For the situation above, give a practical interpretation of $\mathrm { s } = 3213$.
A) We estimate SALARY to increase $\$ 3,213$ for every 1-point increase in GMAT.
B) We expect to predict SALARY to within $2 ( 3213 ) = \$ 6,426$ of its true value using GMAT in a straight-line model.
C) Our predicted value of SALARY will equal $2 ( 3213 ) = \$ 6,426$ for any value of GMAT.
D) We expect the predicted SALARY to deviate from actual SALARY by at least $2 ( 3213 ) = \$ 6,426$ using GMAT in a straight-line model.

Question

Quizplus · Accepted Answer

The interpretation of $s = 3213$ in a statistical context typically refers to the standard error of the estimate, which measures the average distance that the observed values fall from the regression line. Therefore, $2s$ gives a range around the predicted value within which we expect actual values to fall, assuming a normal distribution of errors. This is a common way to express the accuracy of predictions in regression analysis.

For the Situation Above, Give a Practical Interpretation Of s=3213\mathrm { s } = 3213s=3213

For the Situation Above, Give a Practical Interpretation Of $\mathrm { s } = 3213$