Ch 5 · Correlation and Regression

5 concept points · 5 formulas · 4 exam-critical points.

⭐ Important points (exam-critical)

• ⭐Both regression coefficients have the same sign as r.
• ⭐Product of regression coefficients ≤ 1 (since |r| ≤ 1).
• ⭐Probable Error = 0.6745 × (1 − r²)/√n (used for significance check).
• ⭐Distinguish regression from correlation — regression has cause-effect direction.