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Consider the linear regression model Y; = Bo + B1 X; + U¡ for each i = 1,..., n, where Y; represents the average test score of class i and X; represents the size of class i. Which one of the following is true if the sample covariance between average test score and class size is -0.25? а. There is no correlation between Y, X; O b. The variance of X; is negative O c. The OLS estimate of Bß1 is negative d. The values of X1,..., X, are on average smaller than the values of Y1,..., Yn

Consider the linear regression model Y; = Bo + B1 X; + U¡ for each i = 1,..., n, where Y; represents the average test score of class i and X; represents the size of class i. Which one of the following is true if the sample covariance between average test score and class size is -0.25? а. There is no correlation between Y, X; O b. The variance of X; is negative O c. The OLS estimate of Bß1 is negative d. The values of X1,..., X, are on average smaller than the values of Y1,..., Yn

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 2AGP
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Consider the linear regression model Y; = Bo + B1 X; + Ui for each i = 1,...,n, where Y; represents the average test score of class i and X; represents the size of class i. Which one of the following is true if the sample covariance between average test score and class size is -0.25? а. There is no correlation between Y;, X; b. The variance of X; is negative С. The OLS estimate of B1 is negative d. The values of X1, ..., Xn are on average smaller than the values of Y1, . .. , Yn
Transcribed Image Text:Consider the linear regression model Y; = Bo + B1 X; + Ui for each i = 1,...,n, where Y; represents the average test score of class i and X; represents the size of class i. Which one of the following is true if the sample covariance between average test score and class size is -0.25? а. There is no correlation between Y;, X; b. The variance of X; is negative С. The OLS estimate of B1 is negative d. The values of X1, ..., Xn are on average smaller than the values of Y1, . .. , Yn
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