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

gargi.adhikari

Active Member
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..?

upload_2016-10-31_3-39-9.png

upload_2016-10-31_3-39-31.png
 

ShaktiRathore

Well-Known Member
Subscriber
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
 
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