Tag: business economics and quantitative methods

Questions Related to business economics and quantitative methods

In positive correlation, _________________.

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

  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

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Correct Option: B
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.

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

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

  1. partial correlation

  2. total correlation

  3. linear correlation

  4. nonlinear correlation

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Correct Option: C

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

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

  1. multiple correlation

  2. negative correlation

  3. linear correlation

  4. non-linear correlation

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Correct Option: D
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.

Example of negative correlation is________________.

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

  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

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Correct Option: B
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.

Linear correlation can be represented by a ___________.

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

  1. horizontal line

  2. straight line

  3. backward bending curve

  4. 'u' shaped curve

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Correct Option: B
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.

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

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

  1. simple

  2. multiple

  3. partial

  4. total

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Correct Option: C

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

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

  1. Product Moment Correlation

  2. Spearman's Rank Correlation

  3. Concurrent Deviation Method

  4. Karl Pearson's Co-efficient of Correlation

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Correct Option: D
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.

Karl Pearson's method helps to__________.

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

  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.

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Correct Option: C
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.

Rank correlation is used ________.

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

  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

Show answer
Correct Option: D
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.

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

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

  1. Square of the co-efficient of correlation

  2. Probable error

  3. Scatter diagram

  4. Correlation graph

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Correct Option: B
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.