Residual Standard Deviation

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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.

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