Tag: business economics and quantitative methods

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Questions Related to business economics and quantitative methods

Multiple choice business economics and quantitative methods linear regression aspects of correlation scatter graphs and correlation correlation

When the number of items is small, the correlation co-efficient can be found out by _________.

  1. karl pearson's method

  2. spearman's method

  3. product moment correlation

  4. concurrent deviation method
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The product moment correlation coefficient is a measure of the strength of linear relationship between two variables. It is referred to as Pearson's correlation or simply as the correlation coefficient.

Multiple choice business economics and quantitative methods linear regression aspects of correlation scatter graphs and correlation correlation

Correlation measures____________.

  1. the degree of variability between the two variables

  2. the nature of the relationship between the two variables

  3. functional relationship between two variables

  4. all of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Correlation is the statistical measure that indicates the degree tow which two or more variables fluctuate or how strongly they are connected to each other. Value of coefficient ranges between -1 to +1.

Multiple choice business economics and quantitative methods linear regression aspects of correlation scatter graphs and correlation correlation

Which of the following is advisable to use while interpreting the value of co-efficient correlation?

  1. Square of the co-efficient of correlation

  2. Probable error

  3. Scatter diagram

  4. Correlation graph
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Square of the coefficient of correlation is advisable to use because it makes the data easy to be interpreted easily by the researcher. This value represents the variation in one variable that may be explained by another variable.

Multiple choice business economics and quantitative methods linear regression aspects of correlation scatter graphs and correlation correlation

Co-variance between two variables is _____________.

  1. the average of the product of deviations taken from their averages

  2. a is further divided by the product of their standard deviations

  3. a is further divided by the product of their arithmetic averages

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Covariance is defined as the average of the products of the deviations of two variables from their respective means: Cov(X,Y) = E[(X - E[X])(Y - E[Y])].

Multiple choice business economics and quantitative methods linear regression aspects of correlation scatter graphs and correlation correlation

If the regression coefficient by $x$ is $0.5$, what is the value of $a$ in the given equation?
$2Y=aX-16.80$

  1. $4$
  2. $0.5$
  3. $1.0$
  4. $3.32$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The regression coefficient of Y on X is given as 0.5. Rewriting the equation 2Y = aX - 16.80 in slope form gives Y = (a/2)X - 8.40. The slope (regression coefficient) equals a/2 = 0.5, therefore a = 1.0.

Multiple choice business economics and quantitative methods linear regression aspects of correlation scatter graphs and correlation correlation

Kandalls co-efficient of concordance is used to test the ______________.

  1. difference among two or more sets of data

  2. relationship between variables

  3. variations in the given data

  4. randomness of samples
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Kendall's coefficient of concordance (W) is a non-parametric statistic used to assess the agreement or relationship among multiple rankings or variables.

Multiple choice business economics and quantitative methods linear regression aspects of correlation scatter graphs and correlation correlation

Estimate the value of coefficient of correlation between $x$ and $y$ if the two coefficient of regression are $0.49$ and $1$____.

  1. $0.9$
  2. $0.7$
  3. $0.8$
  4. $1.0$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The correlation coefficient (r) is the geometric mean of the two regression coefficients (b_yx and b_xy). Here, r = sqrt(0.49 * 1) = sqrt(0.49) = 0.7.

Multiple choice business economics and quantitative methods linear regression aspects of correlation scatter graphs and correlation correlation

If the regression coefficient of x on y is -1/3 and that of y on x is -3/4. Find the value of correlation coefficient between x and y___.

  1. -0.5

  2. 0.57

  3. 0.8

  4. None
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The correlation coefficient (r) is the geometric mean of the regression coefficients. Since both coefficients are negative, r must also be negative: r = -sqrt((-1/3) * (-3/4)) = -sqrt(1/4) = -0.5.

Multiple choice business economics and quantitative methods linear regression aspects of correlation scatter graphs and correlation correlation

Correlation is______________.

  1. independent of change of origin

  2. independent of change of scale

  3. independent of origin and not of scale

  4. both (A) and (B)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Correlation is independent of change in both of scale and origin. Correlation simply measures the strength of association between two or more variables i.e. how strongly they are connected.