Commerce Exam > Commerce Notes > Properties of Regression Coefficient - Commerce
Properties of Regression Coefficient - Commerce PDF Download
What are the limits of the two regression coefficients?a)No limitb)Must be positivec)One positive and the other negatived)Product of the regression coefficient must be numerically less than unityCorrect answer is option 'D'. Can you explain this answer?
Ref: https://edurev.in/question/753334/What-are-the-limits-of-the-two-regression-coefficients-a-No-limitb-Must-be-positivec-One-positive-an
Properties of Regression Coefficient
Definition: The constant ‘b’ in the regression equation (Ye = a + bX) is called as the Regression Coefficient. It determines the slope of the line, i.e. the change in the value of Y corresponding to the unit change in X and therefore, it is also called as a “Slope Coefficient.”
Properties of Regression Coefficient
- The correlation coefficient is the geometric mean of two regression coefficients. Symbolically, it can be expressed as:
- The value of the coefficient of correlation cannot exceed unity i.e. 1. Therefore, if one of the regression coefficients is greater than unity, the other must be less than unity.
- The sign of both the regression coefficients will be same, i.e. they will be either positive or negative. Thus, it is not possible that one regression coefficient is negative while the other is positive.
- The coefficient of correlation will have the same sign as that of the regression coefficients, such as if the regression coefficients have a positive sign, then “r” will be positive and vice-versa.
- The average value of the two regression coefficients will be greater than the value of the correlation. Symbolically, it can be represented as
- The regression coefficients are independent of the change of origin, but not of the scale. By origin, we mean that there will be no effect on the regression coefficients if any constant is subtracted from the value of X and Y. By scale, we mean that if the value of X and Y is either multiplied or divided by some constant, then the regression coefficients will also change.
Thus, all these properties should be kept in mind while solving for the regression coefficients.
FAQs on Properties of Regression Coefficient - Commerce
| 1. What are regression coefficients in the context of commerce? |  |
Ans. Regression coefficients in commerce refer to the numerical values that quantify the relationship between an independent variable and a dependent variable in a regression analysis. These coefficients represent the change in the dependent variable for every one-unit change in the independent variable, while holding other variables constant.
| 2. How do regression coefficients help in commerce? | |
Ans. Regression coefficients play a crucial role in commerce by providing insights into the impact of independent variables on the dependent variable. These coefficients help businesses understand the direction and magnitude of the relationship between variables, enabling them to make informed decisions and predictions. They can be used, for example, to determine the effect of price changes on sales or the influence of advertising expenditure on revenue.
| 3. Can regression coefficients be negative? | |
Ans. Yes, regression coefficients can be negative. A negative coefficient implies an inverse relationship between the independent and dependent variables. It means that as the independent variable increases, the dependent variable decreases, and vice versa. In commerce, a negative coefficient can indicate, for instance, that an increase in competition leads to a decrease in market share.
| 4. How are regression coefficients interpreted in commerce? | |
Ans. The interpretation of regression coefficients in commerce depends on the context and the variables involved. Typically, a coefficient represents the change in the dependent variable for a one-unit change in the independent variable, assuming all other variables remain constant. For example, if the coefficient of a price variable is -0.5, it means that for every $1 increase in price, sales decrease by 0.5 units, holding other factors constant.
| 5. What is the significance of the p-value associated with regression coefficients? | |
Ans. The p-value associated with regression coefficients indicates the statistical significance of the relationship between the independent variable and the dependent variable. It helps determine whether the observed relationship is likely to be a true relationship or simply due to chance. In commerce, a small p-value (usually below 0.05) suggests that the coefficient is statistically significant, providing evidence of a meaningful relationship between the variables.
Related Exams
About this Document
|
4.62/5 Rating |
|
Dec 27, 2024 Last updated |
Document Description: Properties of Regression Coefficient - Commerce for Commerce 2024 is part of Commerce preparation. The notes and questions for Properties of Regression Coefficient - Commerce have been prepared according to the Commerce exam syllabus. Information about Properties of Regression Coefficient - Commerce covers topics like Properties of Regression Coefficient and Properties of Regression Coefficient - Commerce Example, for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Properties of Regression Coefficient - Commerce.
Introduction of Properties of Regression Coefficient - Commerce in English is available as part of
our Commerce preparation & Properties of Regression Coefficient - Commerce in Hindi for Commerce
courses. Download more important topics, notes, lectures and mock test series for Commerce
Exam by signing up for free. Commerce: Properties of Regression Coefficient - Commerce
Description
Full syllabus notes, lecture & questions for Properties of Regression Coefficient - Commerce - Commerce | Plus excerises question with solution to help you revise complete syllabus | Best notes, free PDF download
Information about Properties of Regression Coefficient - Commerce
In this doc you can find the meaning of Properties of Regression Coefficient - Commerce defined & explained in the simplest way possible.
Besides explaining types of Properties of Regression Coefficient - Commerce theory,
EduRev gives you an ample number of questions to practice Properties of Regression Coefficient - Commerce tests, examples and also practice Commerce tests.
Download as PDF
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
MCQs
,study material
,Viva Questions
,video lectures
,Sample Paper
,past year papers
,mock tests for examination
,ppt
,Summary
,Important questions
,Extra Questions
,Exam
,Objective type Questions
,Properties of Regression Coefficient - Commerce
,Free
,shortcuts and tricks
,Properties of Regression Coefficient - Commerce
,Semester Notes
,practice quizzes
,Properties of Regression Coefficient - Commerce
,Previous Year Questions with Solutions
;
Additional Information about Properties of Regression Coefficient - Commerce for Commerce Preparation
Properties of Regression Coefficient - Commerce Free PDF Download
The Properties of Regression Coefficient - Commerce is an invaluable resource that delves deep into the core of the Commerce exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the Properties of Regression Coefficient - Commerce now and kickstart your journey towards success in the Commerce exam.
Importance of Properties of Regression Coefficient - Commerce
The importance of Properties of Regression Coefficient - Commerce cannot be overstated, especially for Commerce aspirants.
This document holds the key to success in the Commerce exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
Properties of Regression Coefficient - Commerce Notes
Properties of Regression Coefficient - Commerce Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to Properties of Regression Coefficient - Commerce.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, Properties of Regression Coefficient - Commerce Notes on EduRev are your ultimate resource for success.
Properties of Regression Coefficient - Commerce Commerce Questions
The "Properties of Regression Coefficient - Commerce Commerce Questions" guide is a valuable resource for all aspiring students preparing for the
Commerce exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study Properties of Regression Coefficient - Commerce on the App
Students of Commerce can study Properties of Regression Coefficient - Commerce alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Properties of Regression Coefficient - Commerce,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Properties of Regression Coefficient - Commerce is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup