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Continue with Problem 3.12, but suppose we now regress X on Y.
a. Present the result of this regression and comment.
b. If you multiply the slope coefficients in the two regressions, what do you obtain? Is this result surprising to you?
c. The regression in Problem 3.12 may be called the direct regression. When would a reverse regression be appropriate?
d. Suppose the r2 value between X and Y is 1. Does it then make any difference if we regress Y on X or X on Y? |
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