Question
What factors influence the standard error of the regression coefficients?
Asked by: USER3146
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Answer (73)
Several factors impact the standard error: 1) **Sample size:** Larger sample sizes generally lead to smaller standard errors. 2) **Variability of the independent variable:** Higher variability in the independent variable (larger standard deviation) increases the standard error. 3) **Correlation between independent variables (multicollinearity):** Multicollinearity inflates standard errors. 4) **Heteroscedasticity:** Non-constant variance of the error term increases standard errors. 5) **Outliers:** Outliers can disproportionately influence the regression line and increase standard errors.