Standard error, Applied Statistics

Assignment Help:

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

Related Discussions:- Standard error

Simulation - analytical approach, Analytical Approach We will illustra...

Analytical Approach We will illustrate this through an example. Example 1 A firm sells a product in a market with a few competitors. The average price charged by the

Index number, give a elementary example for characterstics of index number

give a elementary example for characterstics of index number

Calculate the seasonal indexes , The total number of overtime hours (in 100...

The total number of overtime hours (in 1000s) worked in a large steel mill was recorded for 16 quarters, as shown below. Year Quarter Overtime hour

Disadvantages of median, Disadvantages For calculating median it is ...

Disadvantages For calculating median it is necessary to arrange the data; other averages do not need any arrangement. Since it is a positional average, its value is not d

Simple linear regression, We are interested in assessing the effects of tem...

We are interested in assessing the effects of temperature (low, medium, and high) and technical configuration on the amount of waste output for a manufacturing plant. Suppose that

Level of significance, Level of Significance: α The main purpose of hyp...

Level of Significance: α The main purpose of hypothesis testing is not to question the computed value of the sample statistic, but to make judgment about the difference between

Find out the probability, There are n seats on an airplane and n passengers...

There are n seats on an airplane and n passengers have bought tickets. Unfortunately, the first passenger to enter the plane has lost his ticket and, so he just chooses a seat at r

JET Copies Case Problem, Read the “JET Copies” Case Problem on pages 678-67...

Read the “JET Copies” Case Problem on pages 678-679 of the text. Using simulation estimate the loss of revenue due to copier breakdown for one year, as follows: 1. In Excel, use a

Chi-square test, Consider the following linear regression model:      a)...

Consider the following linear regression model:      a) What does y and x 1 , x 2 , . . . . x k represent?      b) What does β o , β 1 , β 2 , . . . . β k represent?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd