In a regression model involving 50 observations, the following estimated regression model was obtained: ŷ = 10.5 + 3.2x₁+ 5.8x₂+ 6.5x₃. For this model, SSR = 450 and SSE = 175. The value of MSE is: A) 9.783. B) 58.333. C) 150.000. D) 3.804.

Question

Quizplus · Accepted Answer

MSE = SSE/(n-k-1) where n is the number of observations and k is the number of independent variables in the model. 
In this case, n = 50, k = 4 (including the intercept term). 
So, MSE = 175/(50-4-1) = 3.804. 
Therefore, the correct answer is D.

In a Regression Model Involving 50 Observations, the Following Estimated