If ₁ = Cov(x₁,x₂) / Var(x₁) Where X₁ and X₂

question 17

Multiple Choice

If ₁ = Cov(x₁,x₂) / Var(x₁) where x₁ and x₂ are two independent variables in a regression equation, which of the following statements is true?

• A)If x₂ has a positive partial effect on the dependent variable, and ₁ > 0, then the inconsistency in the simple regression slope estimator associated with x₁ is negative.
• B)If x₂ has a positive partial effect on the dependent variable, and ₁ > 0, then the inconsistency in the simple regression slope estimator associated with x₁ is positive.
• C) If x₁ has a positive partial effect on the dependent variable, and ₁ > 0, then the inconsistency in the simple regression slope estimator associated with x₁ is negative.
• D) If x₁ has a positive partial effect on the dependent variable, and ₁ > 0, then the inconsistency in the simple regression slope estimator associated with x₁ is positive.

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