Direction of slope change when axes are swapped
Question
Three data points are , and . You fit on and record the slope, then fit on . Does the slope go up, stay the same or go down? Answer , or respectively.
Short answer
(it falls). Both slopes share the covariance in the numerator but divide by the variance of the regressor. The values are far more spread out than the values, so the second slope is smaller (here drops to ).
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Open the worked solutionLessons behind this question
- Simple Linear Regression: OLS Estimators and Geometry
- Multiple Linear Regression
- Populations, Samples, and Sampling Distributions
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