What is the standard error of estimate, and what role does it play in simple linear regression and correlation analysis?


The standard error of the estimate is a measure which describes the dispersion of the data points above and below the regression line. The standard error may be used as a measure of how well the regression line fits the data. In addition, the standard error is used in calculating confidence intervals for the mean value of y given a specific value of x, and in calculating the prediction interval for an individual y observation.

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