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Degrees of freedom

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Intro to Business Statistics

Definition

Degrees of freedom refer to the number of independent values or quantities which can be assigned to a statistical distribution. They are crucial in estimating population parameters and conducting hypothesis tests.

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5 Must Know Facts For Your Next Test

  1. Degrees of freedom (df) for a single sample t-test is calculated as $n-1$, where $n$ is the sample size.
  2. In confidence intervals, degrees of freedom affect the critical value from the t-distribution table.
  3. When calculating confidence intervals for small samples with unknown population standard deviation, degrees of freedom determine the shape of the t-distribution.
  4. Higher degrees of freedom result in the t-distribution approaching a normal distribution.
  5. In paired sample tests, degrees of freedom are calculated as $n-1$, where $n$ is the number of pairs.

Review Questions

  • How do you calculate degrees of freedom for a single sample t-test?
  • Why are degrees of freedom important in determining the critical value in confidence intervals?
  • What effect do higher degrees of freedom have on the shape of the t-distribution?
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