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Estimate the slope of the new regression line

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Reference no: EM131709651

Question: In a simple regression the regression equation is Yˆ= 5X + 7. Now if we interchange the X and Y data (that is, what was originally X is now Y and vice versa) and repeat the regression, we would expect the slope of the new regression line to be exactly equal to 1/5 = 0.2. But the slope will only be approximately equal to 0.2 and almost never exactly equal to 0.2. Why?

Reference no: EM131709651

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