Tag: correlation analysis

Quizzes (5) Questions (55)

Questions Related to correlation analysis

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

Correlation is commonly classified into ___  and ____  correlation.

  1. primary, secondary

  2. negative, positive

  3. same, opposite

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

Correlation is primarily classified based on the direction of the relationship between variables, which results in positive and negative correlation.

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

Correlation is said to be ______ when the variables move together in the opposite direction.

  1. positive

  2. negative

  3. indirect

  4. opposite
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When two variables move in opposite directions, such that an increase in one leads to a decrease in the other, the correlation is defined as negative.

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

Correlation is said to be ________ when the variables move together in the same direction.

  1. negative

  2. direct

  3. same

  4. positive
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When two variables move in the same direction, such that an increase in one leads to an increase in the other, the correlation is defined as positive.

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

When the income rises, consumption also rises. This is an example of ________. 

  1. correlation

  2. negative correlation

  3. direct relationship

  4. positive correlation
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Since both income and consumption rise together, they move in the same direction, which is the definition of a positive correlation.

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

A ________ visually presents the nature of association without giving any specific numerical value. 

  1. Karl Pearsons coefficient of correlation

  2. Scatter diagram

  3. Spearmans rank correlation

  4. All of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A scatter diagram is a graphical tool used to visualize the relationship between two variables without providing a specific numerical coefficient.

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

From the following data find correlation coefficient between X and Y.

X Y
21 10
24 14
28 18
30 20
32 23

  1. (0.77)

  2. (-0.77)

  3. (0.99)

  4. (-0.99)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Calculating the Pearson correlation coefficient for the given data points (21,10), (24,14), (28,18), (30,20), (32,23) yields a value very close to 1, indicating a strong positive linear relationship.

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

When r=0, the lines of regression will____________.

  1. intersect each other at $90^o$

  2. be positive slope

  3. be negative slope

  4. be convex to the origin
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When the correlation coefficient r is 0, there is no linear relationship between the variables. Consequently, the two regression lines are perpendicular to each other, intersecting at a 90-degree angle.