1. The formula for the ordinary least squares slope parameter in a simple linear

Question

1. The formula for the ordinary least squares slope parameter in a simple linear regression model Suppose the simple linear regression model is given as y-Ao +Ax + u. Assuming (xi-x)2 > 0, which of the following best represents the ordinary least squares (OLS) slope parameter B1? The population correlation between x and y, multiplied by the ratio of the sample standard deviation of xi to the sample standard deviation of y The sample correlation between x and yi, multiplied by the ratio of the sample standard deviation of yi to the sample standard deviation of x The sample correlation between x and yi, multiplied by the ratio of the population standard deviation of x to the population standard deviation of y. O The sample correlation between xi and yi, multiplied by the ratio of the sample standard deviation of x to the sample standard deviation of yi Suppose you collect data and find that xi and yi are negatively correlated in your sample. You know that after using OLS to estimate the simple linear regression model, that pi must be

Explanation / Answer

Option B is correct as Correlation given by Covariance between (x,y) that is divided by (standard deviation of X multiplied by standard deviation of y)

Formula for beta=Cov(x,y)/Variance (X)

Wnen it is mulptilied by the raitio of standrd deviation y and standard deviation of x then standard deviation at bottom of y gets eliimnated

beta=Cov(x,y)/Varince(x)

Ans 2)

Relation between dependant and independant variable is if egative then beta we found in previus answer must be Negative

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.