INTRODUCTION TO ECONOMETRICS II ECO 306 NOUN 39 1.)
Demonstrate that, in general the sample correlation coefficient is not affected by a change inthe unit of measurement of one of the variables.
2.) Suppose that the observations on two variables
X and
Y lie on a straight
line Demonstrate that ( ) ( ) and that Var(
Y) =
( ) and hence that the sample correlation coefficient is equal to 1 if the slope of the line is positive, –1 if it is negative.
1.3.7.0 REFERENCES FURTHER READING Maddala, GS, &Lahiri, K. (1992).
Introduction to econometrics (Vol. 2).
New York Macmillan.Dougherty, C. (2007).
Introduction to econometrics.
Oxford University Press, USA. Stock, J. H, & Watson, MW. (2015).
Introduction to econometrics. Pearson.
Dougherty, C. (2014).
Elements of econometrics.London: University of London.
