

After calculating using this formula, the estimate of the variance of u = 10.36 was obtained.
#HOW CALCULATE STANDARD ERROR HOW TO#
Based on our calculation results before in the article entitled: “ How to Find Y Predicted, Residual, and Sum of Squares in Multiple Linear Regression“, the value of the residual squared sum was 124.36.įurthermore, the number of observations (n) = 15 and the number of variables (K) = 3. To find the estimate of the variance of u, we can refer to the book written by Koutsoyiannis (1977):īased on the estimate of the variance of u calculation formula, you must have calculated the sum of residual squared values.


To calculate variance, we must find the estimate of the variance of u first. The sum of residual squared is one of the components that must be found first to calculate the value of the variance estimate.Īs a material for the exercise, I used the same data as my previous article entitled: “ How To Calculate bo, b1, and b2 Coefficient Manually in Multiple Linear Regression.” Formula to Find Variance The estimate of the variance of u must calculate first to obtain the variance. On this occasion, I will discuss calculating the multiple linear regression with two independent variables. The formula used in multiple linear regression is different from simple linear regression. Finding variance, standard error, and t-value was an important stage to test the research hypothesis.
