CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

Which of the following are true about the SEE (standard error of estimate)?

I. Measure of the accuracy of the prediction
II. Based on squared vertical deviations between Y and Y'
III. Cannot be negative
Correct Answer: I, II and III

All the descriptions are correct for the standard error of estimate.

User Contributed Comments 5

User Comment
mazen1967 y bar
davidt876 @mazen: y hat you mean?

Also can't the square root of a number be both negative and positive re: answer III?
brave1986 its not the square root but the correlation coefficient raised to the power 2
davidt87 dude what? this is about SEE not the coefficient of determination.

SEE = {E[(Yi - a - bXi)^2/(n-2)]}^(1/2)

sq. roots can be negative or positive no?
CFAJ the SEE is a measure of variability away from the estimated values so it would be always be a positive value cos you can't be like negative one foot away from a point if you know what i mean? you are just 1 foot away from that place
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