Re: dse 2012 question 11

Posted by Dreyfus on Jun 16, 2014; 9:28am
URL: http://discussion-forum.276.s1.nabble.com/dse-2012-question-11-tp7592869p7592871.html

When p(X,Y) is very high...and if we regress Y on X then the predicted Y will be very close to actual Y That means the error terms will explain relatively lower Y values....also correlation implies linear relationship so that when this regression is fitted on a line most of the observation will lie along (x,y)