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Medium · Statistics & Statistical Inference · Numerical · ~6 min · #9

Regressing Both Ways

Two variables have σX=2\sigma_X = 2, σY=5\sigma_Y = 5 and correlation ρ=0.6\rho = 0.6. Let βY∣X\beta_{Y|X} be the OLS slope from regressing YY on XX and βX∣Y\beta_{X|Y} the slope from regressing XX on YY (both with intercepts, population values).

Compute βY∣X⋅βX∣Y\beta_{Y|X} \cdot \beta_{X|Y}.

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OLS slopeCorrelationRegression to the mean

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