A rookie analyst on your AFL team has submitted their working. Something's off. Spot the mistake, then fix it.
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person
Rookie's submission
Model: win % ? tackles · n = 7 teams
Fitted the line for win% on tackles. ✓
Residual sum of squares: SSE = 12.0 ✓
Residual variance:
s² = SSE / n = 12.0 / 7 = 1.71
"So the residual variance is about 1.71."
1 · Where did the rookie go wrong?
In SLR you estimate two parameters — the slope β̂₁ and intercept β̂₀ — so you spend 2 degrees of freedom. The unbiased estimate of the error variance divides by n − 2, not n.
2 · Fix it — what's the correct s²? (SSE = 12.0, n = 7)