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Commerce · Q377

Costing

Graduate and Post Graduate · Commerce · question 377

Q377

Number of observations in regression analysis is considered as

A.
degree of possibility
B.
degree of average
C.
degree of variance
D.
degree of freedom
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Number of observations in regression analysis is considered as degree of freedom. In a regression model, each term is an estimated parameter that uses one degree of freedom. In the regression output below, you can see how each term requires a DF.