Question

Statement 1: Two regression coefficients cannot have the same sign.

Statement 2: Both the regression coefficients can be numerically greater than unity.

Which one of the following is correct?

Options

• Statement 1 is true and Statement 2 is false.

• Statement 2 is true, and Statement 1 is false.

• Both the statements are true.

• Both the statements are false.

Answer 1

Both the statements are false.

Explanation:

Regression coefficients must have the same sign (both positive or both negative).

Since their product b _yx.b_xy = r² and r² ≤ 1, both coefficients cannot be greater than unity.