In a Two-Way ANOVA, Where a Is the Number of Factor

question 52

Multiple Choice

In a two-way ANOVA, where a is the number of factor A levels and b is the number of factor B levels, which of the following expressions gives the number of the degrees of freedom for the "error term"?

• A) (a - 1)(b - 1)
• B) n - ab
• C) (a - 1) + (b - 1)
• D) abn + 1

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Definitions:

Common Stockholders

Investors who own common shares in a company, having rights to vote at shareholders' meetings and to receive dividends.

Compensatory Stock Option Plan

A plan that provides employees the option to purchase company stock at a discounted price as part of their compensation.

Employee Turnover

Refers to the rate at which employees leave a company and are replaced by new employees over a certain period.

Compensation Expense

The total cost incurred by an employer to provide salaries, wages, and benefits to employees, recognized in the financial statements.