1. Consider the two statements below:
1) In simple linear regression, testing the significane of the slope is equivalent to testing the
significance of the correlation between dependent and independent variables.
2) In simple linear regression, the slope always has the same value as the Pearson's correlation
coefficient between dependent and independent variables.
A) Both statments are true
b)Only statment one is true
c)only statment two is true
d) neither are true
Solution
Only statement 1 is true. The significance of the slope does show the significance of
the correlation, since how tightly clustered the values are around the slope shows how
strong/significant the correlation is. The slope however, can be any value, whereas the Pearson's
correlation coefficient will only be between -1 and 1. The answer is B)