Find the equation of the least squares regression line for the relationship between two standardized variables x and y (normally distributed with mean 0 and standard deviation 1).

Question

btaylor · Answer

So far, I have that it must go through (0,0) (x-bar and y-bar), so a will be zero. B, the slope, is r (the correlation) times the standard deviation of y divided by the standard deviation of x --> b = r(Sy/Sx)
I've gotten so b=r. How do I find r of 2 normally distributed data sets?

btaylor · Answer

@ganeshie8 @satellite73 @phi can you help with this one please?