The size of the error in prediction is smallest at the mean of the
predictors and increases as the values for the predictors move toward the
extremes. One woul need to take this into account. Any good regression book
(like Draper and Smith) will have the formula, which is difficult to
represent in text format. Var(mean Y hat) = X(0)'(X'X)inv X(0)sigma hat
squared: where X(0) represents the vector of X's you are predicting from.
Assuming normality, then a t could be determined that would give an
approximate idea of how far the observation was from the prediction.

Paul R. Swank, Ph.D. 
Professor, Developmental Pediatrics
Medical School
UT Health Science Center at Houston 


-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On
Behalf Of Rajarshi Guha
Sent: Saturday, March 27, 2004 8:55 PM
To: [EMAIL PROTECTED]
Subject: [edstat] classifying predictions from linear regression


Hello,
  I'm considering  a problem where I would like to classify the predictions
made by a multiple linear regression model as 'good' or 'bad'.

I have considered a number of ways to go about it - the most obvious being
the use of outlier diagnostics and classifying outliers as 'bad'
predictions.

However I was also wondering whether it would make sense to use the standard
deviation of the observations (or the predictions) as a criterion. That is,
if a prediction lies outside, say, 1 standard deviation, it would be 'bad'.
The problem is '1 standard deviation of *what* ?'

I'm not sure that it seems to make sense to say 1 standard deviation beyond
the mean of the observation. 

Is it possible to calculate confidence intervals for the predictions and
then say that if an observation lies outside the calculated confidence
interval it would be 'bad'?

Or should I simply stick to outlier diagnostics?

Thanks,


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