Chapter:

40+ Correlation and Regression Solved MCQs

in Quantitative Techniques 2

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Economics (CBCS) .

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1.	If the Pearson correlation co-efficient R is equal to 1, then:
A.	there is a positive relationship between the two variables.
B.	there is a negative relationship between the two variables.
C.	There is a perfect positive relationship between the two variables.
D.	there is no relationship between the two variables.
Answer» C. There is a perfect positive relationship between the two variables.

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2.	The study of the relationship between one variables and the combined effect of all other variables is called
A.	Multiple correlation
B.	Total correlation
C.	Partial correlation
D.	Simple correlation
Answer» A. Multiple correlation

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3.	The estimation of correlation between yield of wheat and chemical fertilizers eliminating the effect of pesticides and manures is an example of
A.	Simple correlation
B.	Partial correlation
C.	Total correlation
D.	Multiple correlation
Answer» B. Partial correlation

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4.	In regression analysis, the variable that is being predicted is the
A.	Dependent variable
B.	Independent variable
C.	Indeterminate variable
D.	Combine variable
Answer» A. Dependent variable

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5.	If two variables, x and y, have a very strong linear relationship, then
A.	there is evidence that x causes a change in y
B.	there is evidence that y causes a change in x
C.	there might not be any causal relationship between x and y
D.	None of the above
Answer» C. there might not be any causal relationship between x and y

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6.	A process by which we estimate the value of dependent variable on the basis of one or more independent variables is called:
A.	Correlation
B.	Regression
C.	Residual
D.	Deviation
Answer» B. Regression

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7.	When all data points are falling along a straight line it is called:
A.	Linear relationship
B.	Non-linear relationship
C.	Scatter diagram
D.	Multiple relationship
Answer» D. Multiple relationship

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8.	The value we would predict for the dependent variable when the independent variables are all equal to zero is called:
A.	Slope
B.	Sum of residual
C.	Intercept
D.	Origin
Answer» C. Intercept

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9.	The predicted rate of change of the dependent variable to changes in the independent variable is called:
A.	Slope
B.	Intercept
C.	Error
D.	Constant
Answer» A. Slope

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10.	To measure ranked variables the following correlation coefficient is used
A.	Pearson’s
B.	Spearman’s
C.	Fisher’s
D.	Marshall-Edgeward
Answer» B. Spearman’s

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11.	Which of the following equation is used to describe linear relationship
A.	y = a + bx2
B.	y = ax2 + b
C.	y = ax3 + b
D.	y = a + bx
Answer» D. y = a + bx

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12.	The geometric mean of the two regression coefficient βyx and βxy is equal to:
A.	r
B.	r 2
C.	1
D.	2
Answer» A. r

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13.	The estimate of β in the regression equation Y=α+βx+e by the method of least square is:
A.	Biased
B.	Unbiased
C.	Consistent
D.	Constant
Answer» B. Unbiased

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14.	Regression coefficient is independent of
A.	Value
B.	Scale
C.	Both Origin and Scale
D.	Origin
Answer» A. Value

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15.	If the two lines of regression are perpendicular to each other, the correlation coefficient r is:
A.	0
B.	1
C.	-1
D.	2
Answer» A. 0

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16.	The range of a partial correlation coefficient is:
A.	0 to 1
B.	-1 to 0
C.	0 to ∞
D.	-1 to 1
Answer» D. -1 to 1

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17.	Regression analysis:
A.	Measures the demand for goods
B.	Measures growth
C.	Established the relationship between two variables
D.	Estimate the value of variables
Answer» C. Established the relationship between two variables

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18.	R2 is the mathematical notation for
A.	The coefficient of variation
B.	Pearson’s co-efficient of correlation
C.	The coefficient of determination
D.	The coefficient of Alienation
Answer» C. The coefficient of determination

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19.	Let the coefficient of determination computed to be 0.39 in a problem involving one independent variable and one dependent variable. This result means that
A.	The correlation coefficient is 0.39 also
B.	39% of the total variation is explained by the independent variable
C.	39% of the total variation is explained by the dependent variable
D.	Rank correlation coefficient is 0.61
Answer» B. 39% of the total variation is explained by the independent variable

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20.	The relationship between correlation coefficient and coefficient of determination is that
A.	Both are unrelated
B.	Coefficient of correlation is the square root of the coefficient of determination
C.	The coefficient of determination is the square root of the coefficient of correlation
D.	The coefficient of determination is the coefficient of correlation squared
Answer» B. Coefficient of correlation is the square root of the coefficient of determination

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21.	Which of the following values could not represent a correlation coefficient?
A.	r = 0.99
B.	r = 0.02
C.	r = -0.73
D.	r = 1.09
Answer» D. r = 1.09

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22.	In the regression equation Y = 21 – 3x, the slope is
A.	21
B.	3
C.	-3
D.	18
Answer» C. -3

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23.	If covariance of X and Y is 20, the standard deviation of X is 8 and standard deviation of Y is 5 then the value of coefficient of correlation is
A.	1.5
B.	1
C.	0.5
D.	0.25
Answer» C. 0.5

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24.	In regression analysis, R is also called the
A.	residual
B.	coefficient of correlation
C.	Coefficient of variation
D.	coefficient of determination
Answer» D. coefficient of determination

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25.	The coefficient of determination must be
A.	between -1 and +1
B.	between -1 and 0
C.	between 0 and 1
D.	Between 1 and 2
Answer» C. between 0 and 1

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26.	The correlation coefficient is the of two regression coefficients:
A.	Median
B.	Arithmetic mean
C.	Harmonic mean
D.	Geometric mean
Answer» A. Median

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27.	The coefficient of correlation for a problem was calculated to be 0.36. The coefficient of determination for this would be
A.	0.72
B.	0.13
C.	0.36
D.	1
Answer» B. 0.13

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28.	If X and Y in a regression model are totally unrelated, then
A.	The correlation coefficient would be -1
B.	The coefficient of determination would be o
C.	The coefficient of determination would be 1
D.	The coefficient of coefficient would be 1
Answer» D. The coefficient of coefficient would be 1

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29.	If the value of correlation coefficient between X and Y is ‘0’ then
A.	Positive correlation between X and Y
B.	Negative correlation between X and Y
C.	Absence of Correlation between X and Y
D.	Perfectly positive correlation between X and Y
Answer» C. Absence of Correlation between X and Y

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30.	In simple linear regression, the numbers of unknown constants are:
A.	two
B.	three
C.	four
D.	five
Answer» A. two

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31.	In simple regression equation, the numbers of variables involved are:
A.	1
B.	2
C.	3
D.	4
Answer» B. 2

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32.	If the value of any regression coefficient is zero, then two variables are:
A.	Correlation
B.	Dependent
C.	Determinant
D.	Independent
Answer» D. Independent
Explanation: If the value of any regression coefficient is zero, it indicates that there is no linear relationship between the two variables, meaning the variables are independent.

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33.	The straight line graph of the linear equation Y=a+ bX, will slope upward if:
A.	b=0
B.	b<0
C.	b>0
D.	b = -1
Answer» C. b>0

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34.	The straight line graph of the linear equation Y=a+bX will slope downward if:
A.	b > 0
B.	b<0
C.	b = 0
D.	b = 1
Answer» D. b = 1

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35.	If Y= 2 - 0.2X, then the value of Y intercept is equal to:
A.	-0.2
B.	2
C.	0.2X
D.	1.08
Answer» B. 2

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36.	The dependent variable in a regression is also called:
A.	Regressor
B.	Constant variable
C.	Continuous variable
D.	Regressand
Answer» D. Regressand

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37.	The independent variable in a regression is also called:
A.	Regressor
B.	Regressand
C.	Predictand
D.	Determinat
Answer» A. Regressor

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38.	In the regression equation Y=a+bX, the Y is called:
A.	Independent variable
B.	Dependent variable
C.	Continuous variable
D.	Constant variable
Answer» B. Dependent variable

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39.	If the points on the scatter diagram show no tendency either to increase together or decrease together the value of r will be close to:
A.	-1
B.	+1
C.	0
D.	2
Answer» C. 0

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40.	In the straight line graph of the linear equation Y=a+bX, the slope is horizontal if:
A.	b=-1
B.	b≠0
C.	b=1
D.	b =0
Answer» D. b =0

discuss

40+ Correlation and Regression Solved MCQs

If the Pearson correlation co-efficient R is equal to 1, then:

The study of the relationship between one variables and the combined effect of all other variables is called

The estimation of correlation between yield of wheat and chemical fertilizers eliminating the effect of pesticides and manures is an example of

In regression analysis, the variable that is being predicted is the

If two variables, x and y, have a very strong linear relationship, then

A process by which we estimate the value of dependent variable on the basis of one or more independent variables is called:

When all data points are falling along a straight line it is called:

The value we would predict for the dependent variable when the independent variables are all equal to zero is called:

The predicted rate of change of the dependent variable to changes in the independent variable is called:

To measure ranked variables the following correlation coefficient is used

Which of the following equation is used to describe linear relationship

The geometric mean of the two regression coefficient βyx and βxy is equal to:

The estimate of β in the regression equation Y=α+βx+e by the method of least square is:

Regression coefficient is independent of

If the two lines of regression are perpendicular to each other, the correlation coefficient r is:

The range of a partial correlation coefficient is:

Regression analysis:

R2 is the mathematical notation for

Let the coefficient of determination computed to be 0.39 in a problem involving one independent variable and one dependent variable. This result means that

The relationship between correlation coefficient and coefficient of determination is that

Which of the following values could not represent a correlation coefficient?

In the regression equation Y = 21 – 3x, the slope is

If covariance of X and Y is 20, the standard deviation of X is 8 and standard deviation of Y is 5 then the value of coefficient of correlation is

In regression analysis, R is also called the

The coefficient of determination must be

The correlation coefficient is the of two regression coefficients:

The coefficient of correlation for a problem was calculated to be 0.36. The coefficient of determination for this would be

If X and Y in a regression model are totally unrelated, then

If the value of correlation coefficient between X and Y is ‘0’ then

In simple linear regression, the numbers of unknown constants are:

In simple regression equation, the numbers of variables involved are:

If the value of any regression coefficient is zero, then two variables are:

The straight line graph of the linear equation Y=a+ bX, will slope upward if:

The straight line graph of the linear equation Y=a+bX will slope downward if:

If Y= 2 - 0.2X, then the value of Y intercept is equal to:

The dependent variable in a regression is also called:

The independent variable in a regression is also called:

In the regression equation Y=a+bX, the Y is called:

If the points on the scatter diagram show no tendency either to increase together or decrease together the value of r will be close to:

In the straight line graph of the linear equation Y=a+bX, the slope is horizontal if: