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This paper focuses on the parameters selection that optimizes JPEG 2000 compression for meteorological data. In particular, a procedure for bit rate allocation for different slices of data is proposed. The selection is based on the variances of individual slices and a mixed model approximation of MSE. The solution of the constrained minimization problem for MSE is obtained using Lagrange multipliers. This procedure allows the incorporation of other constraints in this problem such as noninteger bit rates, limited range of possible bit rates, etc. Experimental results are given for all six variables. The reduction of MSE also led to the reduction of maximum absolute error in most cases.