v.I = 80 + B1X.

+ E-I
I I . ·

Q: What is the minimum number of

observations required to·estimate this ·
regression?
y •

• •

• •

X
y

X
V
R2 = 0.87097 •

(df = 1)

X
y •
R2 = 0.77328 •

(df = 2)
 Y~ - 0 + B1X1.I + B2X2_[~ + ·EI·
I = B .
I

.
~

Q: What is the minimum number of

observations required to·estimate this ·
regression?
 y •

• •

Chan ~ru
y

•
y

. (df = 1)

R2 = 0.80 . X1
• •
 • •

df = n-k-1
. . .. . .

k= the number qt explanatory (X) variables

• • • •
Question: How does degrees of freedo1
m
relate to R-squared?

.
As df decreases,.
(le. more variables added to a given model)
R-squared wiUONLY increase