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Please Look at the Equation Below and Pick the Best

Question 7

Multiple Choice

Please look at the equation below and pick the best answer β^1=i=1N(XiXˉ) (YiYˉ) i=1N(XiXˉ) 2\hat { \beta } _ { 1 } = \frac { \sum _ { i = 1 } ^ { N } \left( X _ { i } - \bar { X } \right) \left( Y _ { i } - \bar { Y } \right) } { \sum _ { i = 1 } ^ { N } \left( X _ { i } - \bar { X } \right) ^ { 2 } }


A) B1hat will be positive if Y tends to be above its mean when X tends to be above its mean.
B) The sign of B1 will be the same sign as the denominator.
C) Xi can never equal X-bar for any observation
D) B1hat will be positive if Xi is always above X-bar.

Correct Answer:

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