To obtain the slope estimator using the least squares principle, you divide the
A)sample variance of X by the sample variance of Y.
B)sample covariance of X and Y by the sample variance of Y.
C)sample covariance of X and Y by the sample variance of X.
D)sample variance of X by the sample covariance of X and Y.

Question

Quizplus · Accepted Answer

The slope estimator in a simple linear regression, using the least squares principle, is obtained by dividing the sample covariance of X and Y by the sample variance of X. This gives the amount of change in the dependent variable (Y) for a one-unit change in the independent variable (X).

To Obtain the Slope Estimator Using the Least Squares Principle