Standard error, Applied Statistics

Standard Error

The measure of reliability of the estimating equation that we have developed is given by standard error of estimate. The standard error of estimate represented by se is similar to the standard deviation as both are measures of dispersion. The standard error measures the variability, or scatter, of the observed values around the regression line.

The standard error of the estimate for a regression equation is given by

se = 2135_standard error.png

where,

= values of the dependent variable
384_standard error2.png = estimated values from the estimating equation that correspond to each Y value
n = number of data points used to fit the regression line

In the above equation you can observe the sum of the squared deviations is divided by n-2 and not by n. This is because we have lost 2 degrees of freedom in estimating the regression line. We used the sample to compute a and b.

Equation for calculating standard error of estimate is also given by formula

se = 374_standard error1.png
Posted Date: 9/15/2012 5:19:32 AM | Location : United States







Related Discussions:- Standard error, Assignment Help, Ask Question on Standard error, Get Answer, Expert's Help, Standard error Discussions

Write discussion on Standard error
Your posts are moderated
Related Questions
Lifts usually have signs indicating their maximum capacity. Consider a sign in a lift that reads "maximum capacity 1400kg or 20 persons". Suppose that the weights of lift-users are

Standard Deviation  The concept of standard deviation was first introduced by Karl Pearson in 1893. The standard deviation is the most important and the popular measure of disp

The Null Hypothesis - H0:  The random errors will be normally distributed The Alternative Hypothesis - H1:  The random errors are not normally distributed Reject H0: when P-v


Find the minimum constant workforce: ABC Company, a manufacturer of roofing supplies, has developed monthly forecasts for roofing tiles. The forecasted demand and the expected


differance b/w big M mathod and two phase mathod

You are interested in testing the distance of two golf balls, Brand A and Brand B. You take a random sample of 100 golfers, each of whom hits Brand A once and Brand B once. Define

Two students are sitting in a lecture and considering whether to ask a question from the professor (both of them are considering the same question). If they both ask, the questi

real time applications on graphical representation of o-give curves