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Reverse regression slope from the forward slope

Question

Two variables have Var⁡(X)=10\operatorname{Var}(X)=10 and Var⁡(Y)=20\operatorname{Var}(Y)=20. An ordinary least squares fit of YY on XX (with intercept), y≈αx+βxxy\approx\alpha_x+\beta_x x, returns slope βx=1\beta_x=1. If you instead regress XX on YY, x≈αy+βyyx\approx\alpha_y+\beta_y y, what slope βy\beta_y do you get?

Short answer

1/21/2. OLS slopes are βx=Cov⁡(X,Y)/Var⁡(X)\beta_x=\operatorname{Cov}(X,Y)/\operatorname{Var}(X) and βy=Cov⁡(X,Y)/Var⁡(Y)\beta_y=\operatorname{Cov}(X,Y)/\operatorname{Var}(Y). The forward fit gives Cov⁡=10\operatorname{Cov}=10, so βy=10/20\beta_y=10/20. Note βxβy=r2\beta_x\beta_y=r^2, so the reverse slope is not 1/βx1/\beta_x unless ∣r∣=1|r|=1.

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