What is the difference between the SD line and the regression line? This applet will help explain the "regression effect" or "regression fallacy". Select Data: "gmat"to plot Y=verbal scores vs. X=quantitative scores. Click to plot the SD line (click "No SD Line") and the regression line (click "No Regression Line"). The SD line is the line passing through the point (35, 35.09) (which is the (mean quant, mean verbal) point) with slope equal to sy/sx. The regression line also passes through the point.
Why is the SD line different from the regression line? Why doesn't the regression line go through the middle of the football shaped cloud of points like the SD line? (Hint: Recall the formula for the slope as a function of the correlation coefficient and explain.) If I score one SD above the mean on the quantitative part, is it likely that I will also score one SD above the mean on the verbal part? Why or why not?
Last modified: Tue Jan 13 17:50:04 EST 2004