A regression model involved 5 independent variables and 126 observations. The critical value of t for testing the significance of each of the independent variable's coefficients will have _____.
A) 131 degrees of freedom
B) 125 degrees of freedom
C) 130 degrees of freedom
D) 4 degrees of freedom

Question

Quizplus · Accepted Answer

The degrees of freedom for the t-test of each of the independent variable's coefficients is n-p-1, where n is the number of observations and p is the number of independent variables. Thus, the degrees of freedom in this case will be 126-5-1 = 120, and since each coefficient is tested individually, the answer is C.

A Regression Model Involved 5 Independent Variables and 126 Observations