The sign on the intercept coefficient in a simple regression model will always be the same as the sign on the correlation coefficient.

Question

Quizplus · Accepted Answer

The sign on the intercept coefficient in a simple regression model does not necessarily have any relation to the sign of the correlation coefficient. The intercept represents the expected value of the dependent variable when the independent variable is zero, while the sign of the correlation coefficient indicates the direction of the relationship between the variables.

The Sign on the Intercept Coefficient in a Simple Regression