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Questions › DSE › DSE 2012 › Q34
2 marksEconometrics › Linear regression and OLS › The two regression lines and the correlation coefficientModerateabout 3 min

DSE 2012 Question 34: Linear regression and OLS

For variables XXX and YYY we have the data ∑XY=350, ∑X=50, ∑Y=60, X‾=5, σX2=4, σY2=9\sum XY=350,\ \sum X=50,\ \sum Y=60,\ \overline{X}=5,\ \sigma_{X}^{2}=4,\ \sigma_{Y}^{2}=9∑XY=350, ∑X=50, ∑Y=60, X=5, σX2​=4, σY2​=9 where X‾\overline{X}X denotes the mean of XXX and σX2\sigma_{X}^{2}σX2​ denotes the variance of XXX. Which of the following holds

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For variables X and Y we have the data Σ XY=350, Σ X=50, Σ Y=60, X̅=5, σ_X²=4, σ_Y²=9 where X̅ denotes the mean of X and σ_X² denotes the variance of X. Which of the following holds (A) A one unit change in X causes a 1.25 unit change in Y, and a one unit change in Y causes a 0.6 unit change in X (B) A one unit change in X causes a 0.6 unit change in Y, and a one unit change in Y causes a 1.25 unit change in X (C) A 10% change in X causes a 15% change in Y (D) The regression of Y on X passes through the origin

Also written as: For variables X and Y we have the data sum XY=350, sum X=50, sum Y=60, X_bar=5, sigma_X^2=4, sigma_Y^2=9 where X_bar denotes the mean of X and sigma_X^2 denotes the variance of X. Which of the following holds

Linear regression and OLS has come up 74 times in 7 exams since 2008.

What this question tests

This question is on The two regression lines and the correlation coefficient, part of Linear regression and OLS in Econometrics.

How the regression of y on x and of x on y relate to each other and to correlation.

TestStop has 19 past-paper questions on this subtopic.

Practise Linear regression and OLSMore on The two regression lines and the correlation coefficient

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