# Prediction from predicted/residual values compare to standard error of the estimate

#### yumi

##### New Member
Hello.

I have to indicate how good prediction is, by looking at the actual, predicted, and residual values, compare to the standard error of the estimate.

I understand that the smaller standard error of the estimate is more accurate, and is a better prediction. But when “Residual score of 27.82” is very close to “the standard error of the estimate of 34.45”, is it the good prediction, too? Actual Value is 10. I'm confused.

#### Junes

##### Member
Re: Prediction from predicted/residual values compare to standard error of the estima

$$s = \sqrt{\frac{\sum(Y - Y')^2}{N-2}}$$
Where $$s$$ is the SEE, $$Y'$$ is the predicted value and $$Y$$ is the actual value (each $$Y - Y'$$ is one residual). Note that we have to divide by $$N-2$$ instead of $$N$$ because it's a sample estimate (unless of course you are actually dealing with a population). For more info, see here.