For this question, use the Linear Regression Forecasting explanation and Excel spreadsheet:

9. For this question, use the Linear Regression Forecasting explanation and Excel spreadsheet:

You need to quantify the uncertainty in a regression model forecast of applicants’ future profitability. Assume that both the forecast profits and the errors have a Gaussian distribution. You will calculate the standard deviation of model error on standardized data, the standard deviation in dollars of the model error, and the 90% confidence interval for profitability estimates.

Question: What is the standard deviation of your model error on the standardized Training Set output?

 

  • .587
  • .487
  • -.487
  • -.587