DEFINITION of 'Standard Error'
The standard deviation of the sampling distribution of a statistic. Standard error is a statistical term that measures the accuracy with which a sample represents a population. In statistics, a sample mean deviates from the actual mean of a population; this deviation is the standard error.
BREAKING DOWN 'Standard Error'
The term "standard error" is used to refer to the standard deviation of various sample statistics such as the mean or median. For example, the "standard error of the mean" refers to the standard deviation of the distribution of sample means taken from a population.
The smaller the standard error, the more representative the sample will be of the overall population. The standard error is also inversely proportional to the sample size; the larger the sample size, the smaller the standard error because the statistic will approach the actual value.

Variance
The spread between numbers in a data set, measuring Variance ... 
Sampling Error
A statistical error to which an analyst exposes a model simply ... 
Standard Deviation
1. A measure of the dispersion of a set of data from its mean. ... 
Sampling
A process used in statistical analysis in which a predetermined ... 
Mean
The simple mathematical average of a set of two or more numbers. ... 
IRR Rule
A measure for evaluating whether to proceed with a project or ...

Fundamental Analysis
Explaining Standard Error
Standard error is a statistical term that measures the accuracy with which a sample represents a population. 
Bonds & Fixed Income
Find The Highest Returns With The Sharpe Ratio
Learn how to follow the efficient frontier to increase your chances of successful investing. 
Mutual Funds & ETFs
Understanding Volatility Measurements
How do you choose a fund with an optimal riskreward combination? We teach you about standard deviation, beta and more! 
Fundamental Analysis
Monte Carlo Simulation With GBM
Learn to predict future events through a series of random trials. 
Mutual Funds & ETFs
Stock Market Risk: Wagging The Tails
The bell curve is an excellent way to evaluate stock market risk over the long term. 
Markets
The (Expected) Market Impact of the 2016 Election
With primary season upon us, investor attention is beginning to turn to the upcoming U.S. presidential election. 
Term
How Statistical Significance is Determined
If something is statistically significant, it’s unlikely that it happened by chance. 
Economics
3 Charts All Investors Should See
Given the abysmal start to the year, the defining question is whether this is another painful but temporary correction, or the start of a bear market. 
Investing
2 Opportunities Amid Today’s Market Volatility
As you prepare your portfolio for the market volatility ahead this year, here are a few investing ideas to consider. 
Mutual Funds & ETFs
(EWT, FTW, QTWN) 3 Best Taiwan ETFs for 2016
Examine detailed analysis of three exchangetraded funds that track the Taiwan equity market, and learn about the characteristics and suitability of these ETFs.

How is the standard error used in trading?
The standard error is used in trading as an indicator to measure the volatility in price in relation to a linear regression ... Read Full Answer >> 
How do I calculate the standard error using Matlab?
In statistics, the standard error is the standard deviation of the sampling statistical measure, usually the sample mean. ... Read Full Answer >> 
Do plane tickets get cheaper closer to the date of departure?
The price of flights usually increases one month prior to the date of departure. Flights are usually cheapest between three ... Read Full Answer >> 
Is Colombia an emerging market economy?
Colombia meets the criteria of an emerging market economy. The South American country has a much lower gross domestic product, ... Read Full Answer >> 
What assumptions are made when conducting a ttest?
The common assumptions made when doing a ttest include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >> 
What are some of the more common types of regressions investors can use?
The most common types of regression an investor can use are linear regressions and multiple linear regressions. Regressions ... Read Full Answer >>