Standard Error of the Estimate or SEE

  • Also called Standard Error of the Regression
  • Conceptually SEE helps to measure how imperfect your model is at predicting the value for a dependent variable, Y.
  • Mathematically SEE can be seen a measure of deviation(s) around your model’s regression line, a line one deviation above and below the predicted equation line

The following video explains the concept using sample data from Google and yahoo stock quotes.