EXAMPLE 10.13 ANOVA for Entrepreneurs’ Log Income, Continued

The Excel output in Figure 10.18 (page 521) contains the values for the analysis of variance equation for sums of squares and also the corresponding degrees of freedom. The residual mean square is

The square root of the residual MS is . This is the regression standard error , as claimed. The ANOVA statistic is

The square root of is . Sure enough, this is the value of the statistic for testing the significance of the regression, which also appears in the Excel output. The -value for , is the same as the two-sided -value for .