i. Trying to predict weekly sales with a standard error of estimate of $1,955, we would conclude that 68 percent of the predictions would not be off more than $1,955, 95 percent would not be off by more
$3,910, and 99.7 percent would not be off by more than $5,865. T6
Ii) The smaller the sample, the smaller the possible error as measured by the standard error of estimate. F6
Iii) Approximately 95% of the values lie within two standard errors of the regression line.
A) (i), (ii) and (iii) are all correct statements
B) (i) and (ii) are correct statements, but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) All statements are false

Question

Quizplus · Accepted Answer

The first statement is correct as it describes the empirical rule for standard deviation. The second statement is false; a smaller sample size typically increases the standard error. The third statement is correct as it aligns with the empirical rule that approximately 95% of values lie within two standard deviations.

I Trying to Predict Weekly Sales with a Standard Error