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Basic Question 13 of 14

Which of the following statements is true with respect to the Standard Error of the Estimate (SEE)?

I. SEE measures the dispersion around the regression line.
II. SEE requires the summation of the squares of the differences between the predicted values of Y and the mean of Y.
III. SEE requires n-2 degrees of freedom.
IV. SEE will always decrease as more observations are added.

User Contributed Comments 3

User Comment
Vonoko SEE for regression with 2 explanatory variables would have n-3 degrees of freedom.
mazen1967 iv not alwayes but it tends to decrease see
cfaajay If new addition of observations are outliers ,it will tend to increase the SEE..so its not always that increasing the number of observation will decrease the SEE.
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Tamara Schultz

Tamara Schultz

Learning Outcome Statements

calculate and interpret measures of fit and formulate and evaluate tests off it and of regression coefficients in a simple linear regression

CFA® 2024 Level I Curriculum, Volume 1, Module 10.