Residual Standard Deviation

AAA

DEFINITION of 'Residual Standard Deviation'

A statistical term used to describe the standard deviation of points formed around a linear function, and is an estimate of the accuracy of the dependent variable being measured.

Residual standard deviation is also referred to as the standard deviation of points around a fitted line.

INVESTOPEDIA EXPLAINS 'Residual Standard Deviation'

The residual standard deviation can be calculated when a regression analysis has been performed, as well as an analysis of variance (ANOVA). When determining a limit of quantitation, the use of a residual standard deviation is permissible instead of the standard deviation.

RELATED TERMS
  1. Regression

    A statistical measure that attempts to determine the strength ...
  2. Standard Deviation

    1. A measure of the dispersion of a set of data from its mean. ...
  3. Rescaled Range Analysis

    A statistical analysis of a time-series of financial data that ...
  4. Statistically Significant

    The likelihood that a result or relationship is caused by something ...
  5. Analysis Of Variance - ANOVA

    A statistical analysis tool that separates the total variability ...
  6. Statistics

    A type of mathematical analysis involving the use of quantified ...
Related Articles
  1. The Uses And Limits Of Volatility
    Markets

    The Uses And Limits Of Volatility

  2. Economic Indicators That Do-It-Yourself ...
    Investing Basics

    Economic Indicators That Do-It-Yourself ...

  3. 5 Ways To Measure Mutual Fund Risk
    Mutual Funds & ETFs

    5 Ways To Measure Mutual Fund Risk

  4. Tips For Investors In Volatile Markets
    Investing

    Tips For Investors In Volatile Markets

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center