Let YX and XY represent the slopes in the regression of Y on X and

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Let β̂YX and β̂XY represent the slopes in the regression of Y on X and X on Y, respectively. Show that

β̂YX β̂XY = r2

Where r is the coefficient of correlation between X and Y.

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Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

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