Standard Error of the Estimate

Home » CMA Glossary Term » Ratios and Performance Metrics » Standard Error of the Estimate

The standard error of the estimate is a measure of the accuracy of predictions made in a regression analysis. It quantifies the typical distance between the observed data points and the regression line, indicating the precision of the model’s predictions. A smaller standard error signifies a closer fit of the data to the regression line, enhancing the reliability of the model’s forecasts.

CMA Exam Academy 16-Week Accelerator Program