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If byx = 0.8 and bxy = 0.5, then r equals
A0.632
B0.80
C0.40
D0.65
Answer & Solution
Correct answer: A. 0.632
1. r squared equals byx * bxy.
2. r^2 = 0.8 * 0.5 = 0.40.
3. Take positive square root since both b's are positive.
4. r = sqrt(0.40) approximately 0.632.
_Source: ICAI BoS Foundation Paper 3, Ch 17 'Regression', p.12_
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