Question: Let 1 denote theeffectof x in theregressionequationusing x to predict y and let 1 denote the effectof y in theregressionequationusing y to predict x.

Let β1 denote theeffectof x in theregressionequationusing x to predict y and let β∗

1 denote the effectof y in theregressionequationusing y to predict x. Showthatthecorrelation r is the geometricmean(Exercise1.44)of ˆβ1 and ˆβ∗

1 .

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