TABLE 14-5
A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies. She proceeds to randomly select 26 large corporations and record information in millions of dollars. The Microsoft Excel output below shows results of this multiple regression.
-Referring to Table 14-5, the observed value of the F-statistic is given on the printout as 25.432. What are the degrees of freedom for this F-statistic?
A) 25 for the numerator, 2 for the denominator
B) 2 for the numerator, 23 for the denominator
C) 23 for the numerator, 25 for the denominator
D) 2 for the numerator, 25 for the denominator

Question

TABLE 14-5
A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies. She proceeds to randomly select 26 large corporations and record information in millions of dollars. The Microsoft Excel output below shows results of this multiple regression. 
-Referring to Table 14-5, the observed value of the F-statistic is given on the printout as 25.432. What are the degrees of freedom for this F-statistic?
A) 25 for the numerator, 2 for the denominator 
B) 2 for the numerator, 23 for the denominator 
C) 23 for the numerator, 25 for the denominator 
D) 2 for the numerator, 25 for the denominator

Quizplus · Accepted Answer

The degrees of freedom for the numerator in an F-statistic are typically associated with the number of groups minus one, and the degrees of freedom for the denominator are associated with the total number of observations minus the number of groups.

TABLE 14-5 A Microeconomist Wants to Determine How Corporate Sales Are Influenced