If all the 10,000 data points in a regression lie exactly on a straight line, which of the following is/are true?
I. The intercept term is zero.
II. The percentage of unexplained variance equals zero
III. The slope coefficient is positive.
IV. The correlation coefficient between the dependent and independent variables is 1.
Click on the arrows to vote for the correct answer
A. B. C. D. E. F.Explanation
Since there is no error in the regression, the percentage of unexplained variance will be zero. The intercept and slope terms can be any real numbers and the correlation coefficient will be either + 1 or - 1.