Quant Researcher Interview Questions

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You run a linear regression y = ax + b and later you found that x should be dependent and y should independent. i.e x = cy + d. Without rerun the regression, you compute c and d as c = 1/a and d = -b/a. Will you prediction overestimate, underestimate or neither
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Quant Researcher

Interviewed at DRW

4.3
Jan 30, 2021

You run a linear regression y = ax + b and later you found that x should be dependent and y should independent. i.e x = cy + d. Without rerun the regression, you compute c and d as c = 1/a and d = -b/a. Will you prediction overestimate, underestimate or neither

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