How does standard error differ from standard deviation in regression?

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Understanding the difference between standard error and standard deviation in regression analysis is crucial for interpreting statistical results accurately. When you delve into the world of statistics, particularly regression analysis, you'll encounter both terms. They may seem similar at a glance, but they serve different purposes and provide distinct information about your data. Standard deviation measures the spread of data points around the mean in a dataset, while standard error relates to the precision of the estimated regression coefficients. Grasping these concepts can enhance your ability to make informed decisions based on your statistical findings.