For the information given, what is the calculation to find the degrees of freedo
ID: 2505815 • Letter: F
Question
For the information given, what is the calculation to find the degrees of freedom for regression analysis.
Q =
500
-
80P
+
52Inc
+
1.45Ad
(209)
(36.6)
(24)
(0.835)
Standard Errors in Parentheses
Where:
Q = Sales in Thousands of Units
P = Price in Dollars
Inc = Consumer Income in Thousands of Dollars
Ad = Advertising Expenditure in Millions of Dollars
R2 = 0.6713; The equation was estimated using 35 years of quarterly data.
Q =
500
-
80P
+
52Inc
+
1.45Ad
(209)
(36.6)
(24)
(0.835)
Explanation / Answer
There are three variables which are P, Inc and ad, so the degree of freedom for numerator is df1=3-1=2
There are total 35*4=140 datat which is collected by 35 years of quarterly data.
The degree of freedom for denominator is 140-3=137
SO the degree of freedom of F test for the regression model test is
df1=2 and df2=137