In a simple linear regression, when will r = β̂1?
a. Always
b. If the standard error of estimate is very small
c. If the standard deviation of the x’s equals the standard
deviation of the y’s.
d. Sx = 0
Option C is correct
the sample correlation coefficient (r) is related to the regression coefficient by where is the standard deviation of x, and is the standard deviation of y. from the formula it is clear that if implies .
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