7.Which of the following statements about linear regression is least accurate?

A)   R² = RSS/SST.

B)   The standard error of the estimate (SEE) will be high if the relationship is weak.

C)   The independent variable is uncorrelated with the residuals (or disturbance term).

D)   The correlation coefficient, ρ, of two assets x and y = (covariance_x,y) * standard deviation_x * standard deviation_y.

[此贴子已经被作者于2008-4-1 12:59:14编辑过]

The correct answer was D)

The correlation coefficient, ρ, of two assets x and y = (covariance_x,y) divided by (standard deviation_x * standard deviation_y). The other statements are true. For the examination, memorize the assumptions underlying linear regression!