- Degrees of freedom refer to the maximum number of logically independent values, i.e. values that can change in the data sample.
- Degrees of freedom are calculated by subtracting one from the number of elements in the data sample.
- Degrees of freedom are commonly discussed in connection with various forms of hypothesis testing in statistics, such as chi-square.
- Computing the degrees of freedom is key when trying to understand the importance of the chi-square statistic and the validity of the null hypothesis.
- Degrees of freedom can also describe business situations where management must make a decision that dictates the outcome of another variable.