A multiple regression model involves 40 observations and 4 independent variables produces
SST = 100 000 and SSR = 82,500. The value of MSE is 500.

Question

Quizplus · Accepted Answer

The formula for calculating MSE is MSE = SSR / (n - k), where n is the number of observations and k is the number of independent variables (including the constant term). Substituting the given values, we get 500 = 82,500 / (40 - 4). Solving for SSR, we get SSR = 82,500, which is the same as given in the question. Therefore, the given value of MSE is correct.

A Multiple Regression Model Involves 40 Observations and 4 Independent