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If byx = 1.6 and bxy = 0.4, the value of r is
A1.0
B0.64
C0.5
D0.8
Answer & Solution
Correct answer: D. 0.8
1. r^2 = byx * bxy.
2. = 1.6 * 0.4.
3. = 0.64.
4. r = sqrt(0.64) = 0.8 (positive since both b's positive).
_Source: ICAI BoS Foundation Paper 3, Ch 17 'Regression', p.12_
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