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The regression coefficients remain unchanged due to(a) Shift to origin(b) Shift to scale(c) Always(d) Never© The Institute of Chartered Accountants of India

Question

The regression coefficients remain unchanged due to

(a) Shift to origin
(b) Shift to scale
(c) Always
(d) Never

© The Institute of Chartered Accountants of India

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Solution

To determine the correct answer regarding the conditions under which regression coefficients remain unchanged, let's analyze the options provided:

  1. Shift to Origin: A shift to the origin implies changing the intercept. In regression analysis, if the intercept changes without affecting the slope, the coefficients may not remain the same. Thus, this option is unlikely to keep the coefficients unchanged.

  2. Shift to Scale: A shift to scale usually refers to changing the scale of the dependent and/or independent variables. This transformation affects the coefficients as they are tied to the specific units of measurement. Therefore, this option does not preserve the coefficients.

  3. Always: This suggests that the coefficients will always remain unchanged, which is not true as changes in data or transformations can definitely affect them.

  4. Never: This option indicates that there are conditions under which the regression coefficients can remain unchanged, although this is generally more nuanced and context-dependent.

After considering the implications of each option, the most appropriate answer is:

Final Answer

(a) Shift to origin.

This problem has been solved

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