Question: Correlation. The regression in Figure 10.19 takes reputation as explaining profitability. We could as well take reputation as in part explained by profitability. We would
Correlation. The regression in Figure 10.19 takes reputation as explaining profitability. We could as well take reputation as in part explained by profitability. We would then reverse the roles of the variables, regressing REPUTAT on PROFIT. Both regressions lead to the same conclusions about the correlation between PROFIT and REPUTAT. What is this correlation r? Is there good evidence that it is positive?
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