Tag: business economics and quantitative methods

Questions Related to business economics and quantitative methods

The angle between the two lines will be wider when the correlation between two variable is___________.

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

  1. less

  2. more

  3. equal

  4. very high

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Correct Option: A
Explanation:

The larger the angle between the two regression lines, less the degree of correlation between the two variables and similarly, the small the angle between two lines, the larger would be the degree of correlation between them.

If the regression coefficient bxy is 2.0, what is the value of a in the given equation 2.9X = aY + 15?

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

  1. 5.8

  2. 2.9

  3. 6.18

  4. 4.32

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Correct Option: A

When there is a linear relationship between two numerical variables it can be measured by.

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

  1. Mean

  2. Mode

  3. Scatter diagram

  4. Coefficient of correlation

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Correct Option: D

What does correlation measure?

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

  1. Direction and intensity of relationship among variables

  2. It measures covariation, not causation

  3. Both A and B

  4. None of the above

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Correct Option: C

If $bxy = 0.25$ and $byx = 0.64$, correlation coefficient is equal to ________.

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

  1. $0.16$

  2. $0.40$

  3. $0.89$

  4. $0.30$

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Correct Option: B

Which one of the following is false statement ?

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

  1. The sign of the regression coefficients are always the same.

  2. Correlation coefficient is the geometric mean of the regression coefficients.

  3. The co-variance between two variables divided by the product of their standard deviations produces the value of coefficient of correlation.

  4. Coefficient of correlation is independent of origin but not of sale.

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Correct Option: D

If the value of co-efficient of determination is $0.64$, what is the value of co-efficient of correlation?

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

  1. $0.40$

  2. $0.80$

  3. $0.08$

  4. $0.04$

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Correct Option: B

Which of the following is not true?

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

  1. Correlation means when value of one variable changes, the other variable also changes in the same direction

  2. Correlation studies and measures the direction and intensity of relationship among variables

  3. A scatter diagram visually presents the nature of association without giving any specific numerical value

  4. None of these

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Correct Option: A

Correlation is commonly classified into ___  and ____  correlation.

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

  1. primary, secondary

  2. negative, positive

  3. same, opposite

  4. none of the above

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Correct Option: B

If the scatter points are widely dispersed around the line, the correlation is _______. 

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

  1. unity

  2. linear

  3. high

  4. low

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Correct Option: D