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Question

Economics Question on Probability

Suppose that for a random sample of size 10, the value of covariance between two variables X and Y is 100 and the standard deviations of X and Y are 5 and 20 respectively. What is the value of regression coefficient in regression of Y on X?

A

4

B

20

C

1

D

0.25

Answer

4

Explanation

Solution

The correct answer is (A) : 4.