Tag: business economics and quantitative methods

Questions Related to business economics and quantitative methods

When r = -1, the lines of regression will be_____________.

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

  1. negative slope

  2. positive slope

  3. running downwards from left to right

  4. both (A) and (C)

Show answer
Correct Option: D
Explanation:

When coefficient of correlation is -1, then the two lines of regression coincides and have a negative slope and also run downwards from left to right.

When r = +1, the lines of regression will_____________.

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

  1. be positive slope

  2. move upwards from left to right

  3. be negative slope

  4. both (A) and (B)

Show answer
Correct Option: A
Explanation:

When coefficient of correlation is +1, it is referred to as perfect positive correlation and the two lines of regression coincide and it has a positive slope.

The word 'Regression' was first used by___________.

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

  1. Karl Pearson

  2. Sir Francis Galton

  3. M. Blair

  4. Bowley

Show answer
Correct Option: B
Explanation:

The term regression was first used by Sir Francis Galton to represent the biological phenomenon that the the heights of descendants of tall ancestors tend to regress down towards a normal average.

Under regression analysis, there is____________.

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

  1. relationship between the independent variable and dependent variable

  2. no relationship between the independent variable and dependent variable

  3. no cause and effect relationship

  4. none of the above

Show answer
Correct Option: A
Explanation:

Under regression analysis, relationship between the independent variable and the dependent variable is considered and the degree of relationship between them is ascertained.

Regression analysis studies____________.

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

  1. the degree of variability between the two variables

  2. the direction of relationship between the two variables

  3. the nature of relationship between the two variables

  4. none of the above

Show answer
Correct Option: C
Explanation:

Regression analysis studies the relationship between two variables (between dependent and independent variable) that is the strength of association between the variables

Regression means_________.

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

  1. act of returning back

  2. method of studying correlation between two variables

  3. the direction of change

  4. simply average relationship

Show answer
Correct Option: B
Explanation:

Regression analysis is a set of statistical measure for estimating the relationship between two variables i.e. how the dependent variable changes when there is a change in an independent variable.

If bxy$=0.25$ and byx$=0.64$, correlation coefficient is _________.

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

  1. $0.16$

  2. $0.40$

  3. $0.89$

  4. $0.30$

Show answer
Correct Option: B

The regression co-efficient of x on y is represented by__________.

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

  1. $\sqrt{byx \times bxy}$

  2. $ byx = \dfrac{r sy}{sx}$

  3. $bxy = \dfrac{r sx}{sy}$

  4. none of the above

Show answer
Correct Option: C

If the dependent variable increases as the independent variable increases in an estimating equation, the coefficient of correlation will be in the range of _________.

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

  1. 0 to (-) 1

  2. 0 to (-) 0

  3. 0 to (-) 0.05

  4. 0 to 1

Show answer
Correct Option: D

Karl Pearsons Coefficient of Correlation is also known as ______.

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

  1. simple correlation coefficient

  2. product moment correlation

  3. both A and B

  4. none of the above

Show answer
Correct Option: C