## Yy

Hence Y* is a standardized variable. Notice that standardization involves a dual operation: (1) change of the origin, which is the numerator of (15), and (2) change of scale, which is the denominator. Thus, standardization involves both a change of the origin and change of scale. Now

Sy n

CHAPTER SIX: EXTENSIONS OF THE TWO-VARIABLE LINEAR REGRESSION MODEL 201

since the sum of deviation of a variable from its mean value is always zero. Hence the mean value of the standardized value is zero. (Note: We could pull out the Sy term from the summation sign because its value is known.) Now

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