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 equal to the number of independent variables in the regression equation, which is 2 (setup hours and parts) in this case. Therefore, degrees of freedom for the model is 157 (n-2, where n is the number of observations).

Figure 3-8 The Following Computer Printout Estimated Overhead Costs Using Multiple Regression