1. Correlation and Prediction Error The amount of prediction error is associated with the strength of the correlation between X and Y

2. Distribution of Prediction Error Prediction error is the extent that an actual score deviates from the predicted score – Prediction error is normally distributed and has a standard deviation – The standard error of prediction (or standard error of the estimate) is the standard deviation for prediction error

3. Formula for Standard Error of Prediction

4. Visual Depiction of Standard Error Influence of correlation coefficient on standard error of prediction Standard deviation of Y

5. Confidence Intervals The standard error of prediction can be used to calculate a confidence interval for Y’