2

Let's say we are performing simple linear regression of $y =b_1x + b_0$. Assume we estimate $b_1 = c$, we can use $c = 2$ for this example. When we consider the flipped regression of $x =b_1'y + b_0'$ can we establish any upper or lower bound on $b_1'$? Other than it being greater than 0?? This is the only thing I can think of because we know if $b_1 = 2, cov(x,y) > 0$

Bepop
  • 307

1 Answers1

3

The equation of Regression Line, $y$ on $x$, in its explicit form reads

$$ y= r \frac{SD_y}{SD_x} x + \bar{y} - r\frac{SD_x}{SD_x} \bar{x}$$

And the question has provided us the coefficient of $x$ in the above equation to be equal to $c$, and that is given to be positive. That implies, $$ r\frac{SD_y}{SD_x} =c$$ $$\frac{SD_x}{SD_y} = r/c$$ $$r \frac{SD_x}{SD_y} = r^2/c$$

The equation of Regression Line, x on y, is simply obtained by replacing all y’s with x’s, thus, $$ x= r \frac{SD_x}{SD_y} y + \bar{x} - r\frac{SD_x}{SD_y} \bar{y}$$

Using the notations given in the question, we have: $$ b_1’ = r\frac{SD_x}{SD_y} = r^2/c$$ Since, $$|r| \leq 1 \implies r^2 \leq 1$$ $$ r^2/c \leq 1/c$$ Thus, $$ b_1’ \leq 1/c$$