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3-27-09

# 3-27-09 - choose the one with a smaller value of S e...

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Economic Statistics – Class Notes – 3/27/09

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2. The Standard Error of the Estimate: Recall: The sample variance of “y” This is a measure of the average of the squared deviations of “y” from its mean
Note that:

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In general, we want the standard deviation of errors, S e , to be small. S e is useful for comparing two models
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Unformatted text preview: choose the one with a smaller value of S e . QUESTION: Also, what makes a small S e ? In other words, how small is small? ANSWER: Compare S e to S y . If Se is much smaller, it indicates a good fit. QUESTION: Finally, in what units is S e measured? ANSWER: S e is measured in the same units as “ y ”...
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3-27-09 - choose the one with a smaller value of S e...

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