Figure 3-8 The following computer printout estimated overhead costs using multiple regression:
During the year the company used 1,000 setup hours and 500 parts.
Refer to Figure 3-8. The degrees of freedom for the model is
A) 158
B) 157
C) 159
D) 160

Question

Figure 3-8 The following computer printout estimated overhead costs using multiple regression:
 During the year the company used 1,000 setup hours and 500 parts.
Refer to Figure 3-8. The degrees of freedom for the model is
A) 158 
B) 157 
C) 159 
D) 160

Quizplus · Accepted Answer

The degrees of freedom for the model is calculated as follows:
DF Model = k (number of independent variables) = 2 (hours) + 1 (parts) = 3
DF Error = n - k - 1 = 500 - 3 - 1 = 496
Total degrees of freedom = DF Model + DF Error = 3 + 496 = 499
Therefore, the degrees of freedom for the model is 157 (option B).

Figure 3-8 the Following Computer Printout Estimated Overhead Costs Using