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.
Ii) Approximately 95% of the values lie within two standard errors of the regression line
Iii) The smaller the sample, the smaller the possible error as measured by the standard error of estimate.
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

Statement (i) correctly describes the empirical rule for standard error of estimate. Statement (ii) is also correct as it aligns with the empirical rule for normal distribution. Statement (iii) is incorrect because a smaller sample size typically leads to a larger standard error, not smaller.

I Trying to Predict Weekly Sales with a Standard Error