A smaller standard error indicates that:
A)the regression line more closely approximates the data.
B)the regression line and the data are unrelated.
C)there is negative correlation.
D)the profitability is increasing at an increasing rate.

Question

Quizplus · Accepted Answer

A smaller standard error indicates that the regression line more closely approximates the data, meaning that the relationship between the variables in the regression equation is stronger and the predictions made by the model are more accurate.

A Smaller Standard Error Indicates That