Consider a least squares regression line y 5x 2e and where, Basic Statistics

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Consider a least squares regression line y 5x 2e and where

1. Using a computer, determine what happens to the correlation between X and Y if the Y values are multiplied by 3.

2. Consider a least squares regression line Y = .5X +2+e, and where X and e are independent and both have a standard normal distribution. What happens to the correlation between X and Y if instead Y = .5X +2+2e? Hint: What happens to the residuals.

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Basic Statistics: Consider a least squares regression line y 5x 2e and where

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Basic Statistics: Consider a least squares regression line y 5x 2e and where

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