The most accurate predictions are made when the standard error of estimate equals
A) 1.00
B) 0
C) the mean of Y
D) the standard deviation of Y

Question

Quizplus · Accepted Answer

The standard error of estimate measures the variability or scatter of observed data points around the regression line. It is a measure of the accuracy of predictions made by the regression model. A standard error of estimate of zero would indicate that all the data points fall exactly on the regression line, and therefore there is no variability or error in the predictions. However, this is practically impossible to achieve. So, the closer the standard error of estimate is to zero, the more accurate the predictions are. Therefore, B is the best choice as it indicates perfect predictions.

The Most Accurate Predictions Are Made When the Standard Error