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Business Statistics and Research Methods
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Which one of the following statements is false?

Answer & Solution
Correct Answer: Option B
Option A: Both correlation and regression coefficients have the same sign is generally true. Both correlation and regression coefficients can be positive or negative, indicating the direction of the relationship between variables.

Option B: Arithmetic mean of the regression coefficients is always more than the correlation coefficient is false. The arithmetic mean of regression coefficients is not necessarily greater than the correlation coefficient.

Option C: Regression coefficients are independent of both the origin and scale is generally true. Regression coefficients are not affected by changes in the origin or scale of the variables.

Option D: Correlation coefficient is the square root of two regression coefficients is generally true. The correlation coefficient is the square root of the product of the two regression coefficients.

Therefore, the correct answer is Option B: Arithmetic mean of the regression coefficients is always more than the correlation coefficient.
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2 Comments
Anjali Sah
Anjali Sah 2 years ago
Option c is correct
Learner_som
Learner_som 3 years ago
B and C are false
Regression coefficients are independent of origin but not scale scale

Also, the arithmetic means (am) of both regression coefficients are equal to or greater than the coefficient of correlation. (byx + bxy)/2= equal or greater than r. The regression coefficients are independent of the change of the origin. But, they are not independent of the change of the scale