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.
Correct Answer:
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