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If r = 0.8, byx = 0.4, then bxy equals
A0.5
B1.0
C0.32
D1.6
Answer & Solution
Correct answer: D. 1.6
1. r^2 = byx * bxy.
2. (0.8)^2 = 0.4 * bxy.
3. 0.64 = 0.4 * bxy.
4. bxy = 0.64 / 0.4 = 1.6.
_Source: ICAI BoS Foundation Paper 3, Ch 17 'Regression', p.12_
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