Which one of the following statements is correct regarding limit of the two regression coefficient?

CA Foundation · Quantitative Aptitude · MTP · January 2026
Which one of the following statements is correct regarding limit of the two regression coefficient?
(A) A. No limit.
(B) B. Must be positive.
(C) C. One positive and the other negative.
(D) D. Product of the regression coefficients must be numerically less than unity.

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Product of the regression coefficients must be numerically less than unity.

Topics: Part-A: Business Mathematics, Part-C: Statistics

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