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Consider two random variables T; and G;. To answer the following questions a simple sketch is enough. a) Draw a scatter plot such that Cov(T;,G;) is positive and R? is

high and close to 1. b) Draw a scatter plot such that Cov(T, G;) is positive and R? is low. c) Draw a scatter plot such that Cov(T;,G¡) is negative and R? is high and close to 1. d) Draw a scatter plot such that Cov (T;,G;) = 0. What would be the value of the R2 in this case? Explain in detail. (Hint: use the OLS estimator for the slope of a simple linear regression to answer)

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