Which one of the following statement is correct regarding limit of the two regression coefficients ?

CA Foundation · Quantitative Aptitude · PYQS · September 2024
Which one of the following statement is correct regarding limit of the two regression coefficients ?
(A) A. Must be positive.
(B) B. No limit.
(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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