Manag., November-2017 – Q34
0. Which one of the following statements is true?
- A
If one of the regression coefficients is greater than one, the other must also be greater than one.
- B
The product of the two regression coefficients is always more than one.
- C
Correlation coefficient is the arithmetic mean of the two regression coefficients.
- D
The signs of the two regression coefficients are always the same.
- Option : D
- Explanation : Properties of Regression Coefficients:
Following are the important properties of Regression Coefficients:
> Same sign: Both regression coefficients have the same signs, i.e., either they will be positive or negative.
> Both can not be greater than one: If one of the regression coefficients is greater than unity, the either must be less than unity to the extent the product of both regression coefficients is less than unity. In other words, both the regression coefficients cannot be greater than one.
> Independent of origin: Regression coefficients are independent of the origin but not of scale.
> A.M. > r: Arithmetic mean of regression coefficients is greater than the correlation coefficient.
