Source of variation SS df MSS
Due to X2, X3 828,144.47786 2 414,072.3893
Due to residuals 1,976.85574 12 164.73797
Total 830,121.33360 14
APPENDIX C: THE MATRIX APPROACH TO LINEAR REGRESSION MODEL 947
and therefore se(Yi97i I x'i97i) = 6.9744 We leave it to the reader to verify, using (C.9.6), that var(Yi97i I X1971) = 213.3806 (C.10.19)
Note: var (Y1971 | x'1971) = EK971 — Y1971 I x^]2.
In Section C.5 we introduced the correlation matrix R. For our data, the correlation matrix is as follows:
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