Question

In a statistical study related to the price (in of two shares X and Y, the following two regression lines were found:

Y = 4X – 35 and 9X = Y + 135

i) Average Price of shares X and Y

ii) Standard deviation of the price of Share X and

iii) Coefficient of correlation between the price of Shares X and Y.

 

16 Feb 2018
Answer :
Word Count : 183

It is given that Regression equation of Y on X as Y=4X-35

therefore, byx = 4

similarly, regression equation of X on Y as

9X = Y+135

X=y/9 + 135/9

or X = 0.11Y + 15

therefore bxy = 0.11

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