Tag: business economics and quantitative methods

Questions Related to business economics and quantitative methods

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

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

  1. karl pearson's method

  2. spearman's method

  3. product moment correlation

  4. concurrent deviation method

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Correct Option: C
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.

Correlation measures____________.

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

  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

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Correct Option: A
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.

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

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

  1. Square of the co-efficient of correlation

  2. Probable error

  3. Scatter diagram

  4. Correlation graph

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Correct Option: A
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.

Co-variance between two variables is _____________.

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

  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

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Correct Option: A

Correlation is concerned with the association of ___________.

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

  1. a single variable

  2. two variables

  3. three variables

  4. four variables

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Correct Option: B

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

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

  1. $4$

  2. $0.5$

  3. $1.0$

  4. $3.32$

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Correct Option: C

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

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

  1. difference among two or more sets of data

  2. relationship between variables

  3. variations in the given data

  4. randomness of samples

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Correct Option: B

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

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

  1. $0.9$

  2. $0.7$

  3. $0.8$

  4. $1.0$

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Correct Option: B

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___.

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

  1. -0.5

  2. 0.57

  3. 0.8

  4. None

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Correct Option: A

Correlation is______________.

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

  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)

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Correct Option: D
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.