Lines of Regression:

The line of regression is the line which gives the best estimate to the value of one variable for
any specific value of the other variable. In general, there are two lines of regressions viz.
regression line of Y on X and that of X on Y. Regression line of Y on X is used to estimate
the value of Y for any given value of X while regression line of X on Y is used to estimate
the value of X for any given value of Y. Thus, the line of regression is the line of best fit and
is obtained by the principles of least square.

Regression line of Y on X:

Regression Line of X on Y:

Notes:

1. Two lines of regressions coincide and we get only one regression line if r = ± 1

2. Two lines of regressions become perpendicular to each other if r = 0

3. Regression lines intersect each other when r ≠ ± 1 and r ≠ 0 i.e. when correlation is
imperfect

Regression Coefficients:

Regression coefficient is defined as the slope of the line of regression. It shows the change in
dependent variable due to per unit change in independent variable. For instance, regression
coefficient of Y on X shows the change in Y with respect to unit change in X. It is denoted by
b YX and is given by

or

Regression coefficient of X on Y, on the other hand, shows the change in X with respect to
unit change in Y. It is denoted by b XY and is given by
or

Properties of Regression Coefficients:

1. Correlation coefficient is the geometric mean between the regression coefficients

2. If one of the regression coefficients is greater than unity then the other must be less than
unity i.e if b YX >1 then b XY < 1

3. Arithmetic mean of the regression coefficients is greater than the correlation coefficient
provided r > 0 i.e

4. Regression coefficients are independent of change of origin but not of scale.