Preparing for your next Quant Interview?
Practice Here!
OpenQuant
All Questions
Regression Coefficients
00:00:00
3/10
Machine Learning
Parts
Part 1

Suppose that we have two datasets XX and YY with Var(X)=10Var(X) = 10 and Var(Y)=20Var(Y) = 20. We perform the linear regression:

yαx+βxxy \sim \alpha_x + \beta_xx

and obtain βx=1\beta_x = 1. Suppose now perform the regression:

xαy+βyyx \sim \alpha_y + \beta_yy

What is the value of βy\beta_y?