R15.P1.T2.STOCK&WATSON_CH4_TOPIC: Q & A Section

[gargi.adhikari]

In reference to R15.P1.T2.STOCK&WATSON_CH4_TOPIC: Q & A Section
Please refer to the attached screenshots below:-
There is ONLY ONE Regressor/ Independent variable. So the degrees of freedom should be N- (No of Regressor Parameters)= 36- 1= 35...? Why are we factoring in the Dependent variable in the Degrees of Freedom in the solution below..?

 

[rajivpro]

Hi @gargi.adhikari,

The explanation for the same is given in pg 16 of the study notes. We will be using (n-2) dof for two variable regression.

Thanks,
Rajiv

 

[ShaktiRathore]

Hi Gargi,
df=1 for intercept term+no of independent variables=1+1=2 for this question(we need to consider intercept term also along with the other independent variables)
hence SER=sqrt(SSR/n-df)=sqrt(SSR/n-2)
thanks

 

[gargi.adhikari]

@ShaktiRathore Thanks so much Skahti for helping me out with that