If X_i and Y_i Are Positively Correlated in the Sample

question 2

Multiple Choice

If x_i and y_i are positively correlated in the sample then the estimated slope is _____.​

• A)​less than zero
• B)​greater than zero
• C)​equal to zero
• D)​equal to one

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Definitions:

Normal Distribution

A statistical distribution where data points form a symmetric, bell-shaped curve around the mean, indicating that values near the mean are more frequent in occurrence than those far from the mean.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean, indicating how spread out the values in the dataset are.

Variance of Returns

A measure used to quantify the volatility of returns from an investment, indicating the dispersion of returns around the mean.

Squared Deviations

The squared differences between each data point in a set and the set's mean, used in statistical analysis to measure variance.