Which statement below is correct? Select one: A. The value of a correlation between X and Y is reported by a researcher to be r = -0.5, it indicates that the X variable explains 25% of the variability in the Y variable in a univariate regression. B. QQ plot can be used to judge whether there is an outlier effect in the regression. C. Capital asset pricing theory asserts that individual stock returns are best explained by multiple factors. D. You are running a regression of Y on X, if you scale Y and X by dividing them by 100, it will have no effect on intercept and coefficient of X.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
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