Hi,
  I have question regarding the interpretation of the standard error of
  prediction in linear regression. As I understand this value is the
  variance of the error term for the predicted value in question.

Is it possible to interpret this value as some sort of a reliability of
the prediction? That is, a low value of SEP would indicate that the
predicted value is more reliable (even though the residual might be high)
compared to the situation with a high value of SEP?

If the above is not possible could anybody explain in what way the
residual of a prediction is related to the standard error of the
prediction?

Thanks,
Rajarshi

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