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    Identifying degrees of freedom and sum of squares

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    A company that manufactures computer chips wants to use a multiple regression model to study the effect that the variables

    x1 = daily production volume
    x2 = daily amount of time involved in production

    have on

    y = total daily production cost

    If a regression model is estimated using 188 observations on each of these variables, what are the degrees of freedom for the regression, the regression sum of squares, the error sum of squares, and the total sum of squares?

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    Solution Preview

    Note that for p explanatory variables, the model degrees of freedom (DFM) are equal to p, the error degrees of ...

    Solution Summary

    The solution solves for the sum of squares and identifies the degrees of freedom for the outlined regression.