Use the following steps to establish a relationship between the coefficient of determination and the correlation coefficient.

Question:

a. Show that $\widehat{y}_{i}-\bar{y}=b_{1}\left(x_{i}-\bar{x}\right)$.

b. Use part (a) to show that Regress $S S=\sum_{i=1}^{n}\left(\widehat{y}_{i}-\bar{y}\right)^{2}=b_{1}^{2} s_{x}^{2}(n-1)$.

c. Use part (b) to establish $R^{2}=r^{2}$.

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Regression Modeling With Actuarial And Financial Applications

ISBN: 9780521135962

1st Edition

Authors: Edward W. Frees

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Question Posted: Apr 20, 2024 09:00 AM

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Use the following steps to establish a relationship between the coefficient of determination and the correlation coefficient.

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a hatyibaryleftb0b1 xi ightbaryleftbaryb1 barxb1 xi ightb...View the full answer

Regression Modeling With Actuarial And Financial Applications

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