# Standard Error

*Math & Statistics — Finicade finance glossary*

How much a sample estimate — like an average — would wobble if you redrew the sample. It shrinks with the square root of sample size, which is why Monte Carlo needs so many paths for precision.

**Also known as:** sampling-error, standard-error-1-n

**Related terms:** [Monte Carlo Simulation](https://finicade.com/glossary/monte-carlo), [Standard Deviation](https://finicade.com/glossary/standard-deviation), [Confidence Level](https://finicade.com/glossary/confidence-level)

**Taught in:** Math Masters — The Central Limit Theorem

Source: https://finicade.com/glossary/standard-error