If a simple least squares regression model is developed based on sample where the two variables are known to be positively correlated,the sign on the regression coefficient will be positive also.

Question

Quizplus · Accepted Answer

This statement is true. In a simple least squares regression model, the regression coefficient represents the change in the response variable (dependent variable) for a one-unit increase in the predictor variable (independent variable). If the two variables are known to be positively correlated, this means that a one-unit increase in the predictor variable will lead to an increase in the response variable. Therefore, the sign on the regression coefficient will also be positive.

If a Simple Least Squares Regression Model Is Developed Based