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Worked Examples · Example 4

Q.If byx=0.8b_{yx}=0.8 and bxy=0.45b_{xy}=0.45, find the coefficient of correlation between xx and yy.

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The correlation coefficient is the (signed) geometric mean of the two regression coefficients:

r=±byx⋅bxy.r=\pm\sqrt{b_{yx}\cdot b_{xy}}.

Substituting,

r=±0.8×0.45=±0.36=±0.6.r=\pm\sqrt{0.8\times0.45}=\pm\sqrt{0.36}=\pm0.6.

Both byxb_{yx} and bxyb_{xy} are positive, so by Property 1 the sign of rr is positive. …

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