Which of the following statements is correct when all the actual values of y are on an upward sloping regression line?
A)The coefficient of correlation is equal to one and the sign of the coefficient of correlation will be negative but the sign of the slope with be positive.
B)The coefficient of correlation and the slope must both be equal to 1.
C)The coefficient of correlation is equal to one and the sign of the coefficient of correlation and the sign of the slope will both be positive.
D)The coefficient of correlation and the slope must be equal to - 1.

Question

Quizplus · Accepted Answer

If all the actual values of y are on an upward sloping regression line, it means there is a positive relationship between the independent variable and dependent variable. 
In this case, the coefficient of correlation will be equal to +1 because all the observations are on the regression line, and the sign of the coefficient of correlation and the slope will both be positive because the line is upward sloping. Option A is incorrect because the sign of the coefficient of correlation will also be positive since all the actual values are on the regression line. Option B and D are incorrect because both the coefficient of correlation and slope cannot be equal to 1 or -1 simultaneously.

Which of the Following Statements Is Correct When All the Actual