In a simple linear regression, the standard error of the estimate is also known as the: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
Explanation:
Explanation
In simple linear regression, the standard error of the estimate (SEE) is also known as the root mean square error (RMSE).
Key Concepts:
Standard Error of the Estimate (SEE): Measures the standard deviation of the residuals (errors) in a regression model. It represents the average distance that the observed values fall from the regression line.
Root Mean Square Error (RMSE): This is calculated as:
RMSE=n−k−1∑i=1n(yi−y^i)2
where:
yi = actual values
y^i = predicted values
n = number of observations
k = number of independent variables (for simple linear regression, k=1)
Why not the other options:
Mean Square Error (MSE): This is the average of the squared errors, not the standard error. MSE = SEE²
Sum of Squares Error (SSE): This is the total of squared errors, not the standard error. SSE = Σ(y_i - ŷ_i)²
Formula Relationship:
SEE=RMSE=MSE=n−2SSE(for simple linear regression)
Therefore, the correct answer is C. root mean square error.
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In a simple linear regression, the standard error of the estimate is also known as the: