An iterative inversion procedure for magnetotelluric data based on the generalized inverse of an arbitrary matrix is applied to information measured along a traverse of Israel. The resolution and information matrices, a double eigensystem, and the effective number of degrees of freedom are used for the assessment of the set of data, the set of model parameters obtained, and the global relationship between the two sets. The method is used for the interpretation of several magnetotelluric sites, and bounds for the variance of each of the model parameters are computed. The results are in agreement with borehole data and other independent geophysical and geological information. A crustal cross section of Israel is presented. Some new deep structural information is revealed, such as the existence of a conductor at a roughly uniform depth of 23 km along the section.