Recall that college students repeatedly played a version of the game "prisoner's dilemma," where competitors choose cooperation, defection, or costly punishment. At the conclusion of the games, the researchers recorded the average payoff and the number of times punishment was used for each player. Based on a scatter plot of the data, the simple linear regression relating average payoff (y) to punishment use (x) resulted in SSE = 1.04.
a. Assuming a sample size of n = 28, compute the estimated standard deviation of the error distribution, S.
b. Give a practical interpretation of s.
For Information: Refer to the Nature (March 20, 2008) study of whether "nice guys finish last" in business, Exercise 11.14.