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Standard Error of the Estimate

Definition

The standard error of the estimate, also known as "standard error" or "SE", measures how much we expect our predictions to vary from one sample to another. It estimates how accurately our regression line predicts future observations.

Analogy

Think about baking cookies using a recipe. If you make multiple batches following exactly the same recipe, but with different ingredients from each batch, then measure how much each batch deviates from its expected outcome, that's similar to calculating standard error. It tells you how consistent your results are likely to be when using your regression equation on different samples.

Related terms

Regression Line: A straight line that best fits a scatterplot by minimizing the sum of squared residuals.

Confidence Interval: An interval estimate around a population parameter that provides a range within which we believe an unknown population parameter lies.

Hypothesis Testing: A statistical method used to make inferences or decisions about a population based on sample data.