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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

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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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