For a linear regression model with standard error s_e, why would you want a small s_e in your model?

1. It means more of the variation in the response variable is explained by the model.
2. It means less of the variation in the response variable is explained by the model.
3. It means the typical amount of prediction error for the model will be small.
4. It means the typical amount of prediction error for the model will be large.