Statistics Standard Error of the Regression Analysis

However, standard error of the regression analysis (S) also known as the standard error of the estimate shows how well the model fits the data to be interpreted or analysed. The S indicates the absolute distance that the data points fall from the regression line on average. As shown in the graph below S values are better when they are small since it shows that the observed points are nearer to the fitted line (Carter 12-34). Analyzing data using the standard error of the regression is more advantageous compared the R-squared that is also used for the same purpose (Carter 12-34). The S tells you how accurate and exact the model forecasts are using the units of the response variable that is the Y- variable.