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    Question

    Which of the following is correct regarding regression coefficient?

    A It is dependent of the change in origin and scale of independent variable Correct Answer Incorrect Answer
    B It is independent of the change in origin but depends on scale of independent variable Correct Answer Incorrect Answer
    C It is independent of both scale and origin of independent variable Correct Answer Incorrect Answer
    D It is dependent on origin but independent of the scale of independent variable Correct Answer Incorrect Answer

    Solution

    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.

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