The higher the variance of X in our sample, the higher the variance of B1hat.

Name: The higher the variance of X in our sample, the higher the variance of B1hat.
Brand: Quizplus
Rating: 4.9 (28 reviews)

Question

Quizplus · Accepted Answer

The variance of the estimator $ \hat{B}_1 $ (the slope in a simple linear regression) is inversely related to the variance of X. Therefore, as the variance of X increases, the variance of $ \hat{B}_1 $ decreases, assuming other factors remain constant.

The Higher the Variance of X in Our Sample, the Higher