Question

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 _____.

Answer 1

The critical value of t for testing the significance of each of the independent variable's coefficients will have 125 degrees of freedom.

Explanation:

Here we have to find the degrees of freedom for the t testing, which is calculated with:

`df=N-1`; where
`N` refers to the total number of observations.

So, in this case would be:

`df=126-1=125`

The degrees of freedom refers to the range where observations can variate. It's like you have to choose one object between other 5, when you are gonna pick the first one, you have 5 choices, the process can variate 5 items, then when you are gonna pick the second one, you have 4 choices, that your range of variation, when you are gonna pick the fifth one, you don't have decision to make, there you don't "freedom" to choose, that's an analogy of the degrees of freedom.

Answer 2

Answer: 121 degrees of freedom

Explanation:

The df are determined as (n-k) where as k we have the parameters of the estimated model and as n the number of observations. n=126 and k=5 .

Now the degrees of freedom will be equal to n-k =126-5 = 121