Question

I regressed corn price on corn production, stocks, exports, and a constant (for the intercept) using annual data for 14 years. The F statistic is for the overall significance of the regression is 5.00. What are the degrees of freedom for the numerator? For the denominator?

Answer 1

Answer 2

Calculation:

1. Total predictors (k): Corn production, stocks, exports, and a constant (intercept) → 3 explanatory variables (excluding the intercept).

2. Sample size (n): 14 years of data.

3. Numerator df (for regression): $k=3$.

4. Denominator df (for error): $n-k-1=14-3-1=10$.

The F-statistic tests if at least one predictor is significant, with $df=(3,10)$

Short Answer:
Numerator degrees of freedom: 3
Denominator degrees of freedom: 10