Tag: business economics and quantitative methods

Quizzes (24) Questions (932)

Questions Related to business economics and quantitative methods

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

In positive correlation, _________________.

  1. when one variable increases, the other variable decreases and vice-versa

  2. when one variable increases, the other variable also increases and vice-versa

  3. the study is made on more than two variables

  4. the study is made on less than two variables
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In positive correlation, increase in one variable leads to an increase in another variable or vice versa . It states both the variables move in the same direction.

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

If the ratio of change between the two variables is constant, it is said to be _____________.

  1. partial correlation

  2. total correlation

  3. linear correlation

  4. nonlinear correlation
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When the ratio of change between two variables is constant, the variables follow a straight-line relationship, which is defined as linear correlation.

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

If the ratio of change between the two variables are not constant, it is called ____________.

  1. multiple correlation

  2. negative correlation

  3. linear correlation

  4. non-linear correlation
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

If the ratio of change between two variable is not constant i.e. change in one variable leads to a change in another variable but by different amount or when all the points in the scatter diagram tends to lie around a smooth curve.

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

Example of negative correlation is________________.

  1. relationship between price and supply of a commodity

  2. relationship between price and demand for a commodity

  3. relationship between income and saving

  4. relationship between income and consumption
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Relationship between price and commodity is an example of negative correlation as increase in the price of a commodity leads to a decrease in the quantity of a commodity i.e. both the variables move in an opposite direction.

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

Linear correlation can be represented by a ___________.

  1. horizontal line

  2. straight line

  3. backward bending curve

  4. 'u' shaped curve
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Linear correlation is represented as a straight line as the ratio of change is constant , change in one variable leads to a constant change in another variable.

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

In ______ correlation, the study is made on more than two variables but assuming some variables are exchanged.

  1. simple

  2. multiple

  3. partial

  4. total
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Partial correlation measures the relationship between two variables while controlling for the effects of other variables in the analysis. This differs from simple correlation which only examines two variables, and multiple correlation which considers several variables simultaneously. The term 'exchanged' appears to be a wording issue for 'controlled' or 'held constant'.

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

Which of the following methods of measuring correlation is the most popular method?

  1. Product Moment Correlation

  2. Spearman's Rank Correlation

  3. Concurrent Deviation Method

  4. Karl Pearson's Co-efficient of Correlation
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Karl pearson's coefficient of correlation determines how strongly the two variables are related to each other i.e. measure the linear correlation between the variables.

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

Karl Pearson's method helps to__________.

  1. give direction and degree of relationship between the two variables.

  2. calculate the unknown value from a known value.

  3. both (A) and (B).

  4. calculate the known value from an unknown value.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Karl pearson's coefficient of correlation helps in measuring the degree of relationship between two variable i.e. how strongly they are connected and it also calculate the unknown value from the known values.

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

Rank correlation is used ________.

  1. only when the number of variables is smaller

  2. only when the rank is given

  3. to know the talent of the workers of two factories

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

Rank correlation is used when the ranks are provided to the items or individuals that makes the comparison or measuring the relation between them easy  and also when the number of variables is small.

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

Which of the following plays a great part in interpreting the value of the relationship?

  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
B Correct answer
Explanation

The probable error of correlation coefficient helps in determining the accuracy and reliability of the value of the coefficient that so far depends on the random sampling.