STATISTICAL TECHNIQUES AND TOOLS
REGRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If a regression coefficient is less than 1 then the other should be?
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Equal to 1
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Less than 1
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0
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Greater than 1
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Explanation:
Detailed explanation-1: -The correct answer is: Greater than 1.
Detailed explanation-2: -The correlation coefficient always takes a value between-1 and 1, with 1 or-1 indicating perfect correlation (all points would lie along a straight line in this case).
Detailed explanation-3: -Theoretically, the beta is not bound to 1. If it is larger than that, it means that one standard deviation change in the independent variable results in more than one standard deviation change in the dependent variable.
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