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All questions of Chapter 17: Correlation And Regression for CA Foundation Exam

The correlation between the speed of an automobile and the distance travelled by it after applying the brakes is
  • a)
    Negative
  • b)
    Zero
  • c)
    Positive
  • d)
    None of these
Correct answer is option 'C'. Can you explain this answer?

Rajat Patel answered
The stopping distance is proportional to the square of the Speed of the car ( before applying brakes)

That is.. If you double your speed…the distance required to stop your car becomes four times.
Similarly,

If the vehicle doesn't come to halt but slowes down…

The stopping distance is proportional to the difference in the squares of the initial speed and the final speed

If u = 2x + 5 and v = –3y – 6 and regression coefficient of y on x is 2.4, what is the regression coefficient of v on u?
  • a)
    3.6
  • b)
    –3.6
  • c)
    2.4
  • d)
    –2.4
Correct answer is option 'B'. Can you explain this answer?

Regression coefficient of y on x

- The regression coefficient of y on x is given by the formula:

bxy = (covariance of x and y) / (variance of x)

- We are given that the regression coefficient of y on x is 2.4.

bxy = 2.4

Expressing u and v in terms of x and y

- We are given that:

u = 2x + 5

v = 3y - 6

- We can express x and y in terms of u and v:

x = (u - 5) / 2

y = (v + 6) / 3

Regression coefficient of v on u

- We want to find the regression coefficient of v on u.

- We can use the formula for the regression coefficient of y on x, but with u and v switched:

bvu = (covariance of u and v) / (variance of u)

- We can express the covariance of u and v in terms of the covariance of x and y:

covariance of u and v = covariance of (2x + 5) and (3y - 6)

= 6 * covariance of x and y

- We can express the variance of u in terms of the variance of x:

variance of u = variance of (2x + 5)

= 4 * variance of x

- Substituting these expressions into the formula for bvu:

bvu = (6 * covariance of x and y) / (4 * variance of x)

= (3/2) * (covariance of x and y) / (variance of x)

= (3/2) * bxy

= 3.6

Answer: (B) 3.6

The regression coefficients remain unchanged due to a
  • a)
    Shift of origin
  • b)
    Shift of scale
  • c)
    Both (a) and (b)
  • d)
    (a) or (b)
Correct answer is option 'A'. Can you explain this answer?

Sameer Rane answered
The regression coefficients remain unchanged due to a shift of origin but change due to a shift of scale. This property states that if the original pair of variables is (x, y) and if they are changed to the pair (u, v) where

(ii)  The two lines of regression intersect at the point

(mea of "x", mean of "y"),

where x and y are the variables under consideration. 

(iii)  The coefficient of correlation between two variables x and y in the simple geometric mean of the two regression coefficients. The sign of the correlation coefficient would be the common sign of the two regression coefficients.

If y = 3x + 4 is the regression line of y on x and the arithmetic mean of x is –1, what is the arithmetic mean of y?
  • a)
    1
  • b)
    –1
  • c)
    7
  • d)
    none of these
Correct answer is option 'A'. Can you explain this answer?

Puja Singh answered
Given:

- Regression line of y on x is y = 3x - 4
- Arithmetic mean of x is 1

To find:

- Arithmetic mean of y

Solution:

We know that the regression line of y on x is given by:

y = a + bx,

where a is the y-intercept and b is the slope of the line.

Comparing this with the given equation y = 3x - 4, we see that:

a = -4
b = 3

Now, we know that the arithmetic mean of x is given by:

x̄ = (x1 + x2 + ... + xn) / n,

where x1, x2, ..., xn are the n observations of x.

Since the arithmetic mean of x is 1, we have:

1 = (x1 + x2 + ... + xn) / n.

Multiplying both sides by n, we get:

x1 + x2 + ... + xn = n.

But we don't need to calculate n explicitly, since we only need to find the arithmetic mean of y.

The arithmetic mean of y is given by:

ȳ = (y1 + y2 + ... + yn) / n,

where y1, y2, ..., yn are the corresponding observations of y.

Substituting y = 3x - 4 in this expression, we get:

ȳ = (3x1 - 4) + (3x2 - 4) + ... + (3xn - 4) / n

= 3(x1 + x2 + ... + xn) / n - 4

= 3n / n - 4

= 3 - 4

= -1.

Therefore, the arithmetic mean of y is -1.

Answer: Option A (1) is incorrect. The correct answer is option D (none of these).

Age of Applicants for life insurance and the premium of insurance – correlations are
  • a)
    Positive
  • b)
    Negative
  • c)
    Zero
  • d)
    None
Correct answer is option 'A'. Can you explain this answer?

Divya Dasgupta answered
However, in general, the age of the applicant is a significant factor in determining the premium of life insurance. Younger individuals typically pay lower premiums since they are considered to be at lower risk of death than older individuals. As individuals age, their health risks increase, and therefore, the premium for life insurance also increases. Additionally, the type of life insurance policy, such as term or whole life insurance, and the amount of coverage also impact the premium.

If the rank correlation coefficient between marks in management and mathematics for a group of student in 0.6 and the sum of squares of the differences in ranks in 66, what is the number of students in the group?
  • a)
    10
  • b)
    9
  • c)
    8
  • d)
    11
Correct answer is option 'A'. Can you explain this answer?

Jatin Mehta answered
Given:
- Rank correlation coefficient = 0.6
- Sum of squares of differences in ranks = 66

To find:
- Number of students in the group

Solution:
Let there be 'n' students in the group.

Finding the value of n:
- The sum of the first 'n' natural numbers is n(n+1)/2.
- Therefore, the sum of the ranks of the students in management and mathematics combined is n(n+1).
- Since each student has a rank in both subjects, the sum of their ranks should be counted twice, so we need to divide by 2.
- Therefore, the sum of the ranks in each subject is n(n+1)/2.

Finding the value of the rank correlation coefficient:
- The formula for rank correlation coefficient is given as:

r = 1 - (6∑d^2)/(n(n^2-1))

where,
d = difference in ranks
n = number of pairs of observations

- Here, the sum of squares of differences in ranks is given as 66.
- So, 6∑d^2 = 6(66) = 396.

Substituting the given values in the formula for r, we get:

0.6 = 1 - (396)/(n(n^2-1))

Simplifying this expression, we get:

0.6n^3 - 0.6n - 396.4 = 0

Using trial and error method, we can find that n=10 satisfies the above equation.

Therefore, the number of students in the group is 10.

Answer: Option (a) 10.

Variance may be positive, negative or zero.
  • a)
    true
  • b)
    false
  • c)
    both
  • d)
    none
Correct answer is option 'B'. Can you explain this answer?

Variance measures how far a data set is spread out. The technical definition is “The average of the squared differences from the mean” but all it really does is to give you a very general idea of the spread of your data. A value of zero means that there is no variability; All the numbers in the data set are the same.

Variance cannot be negative: The reason is that the way variance is calculated makes a negative result mathematically impossible. 
Variance is the average squared deviation from the mean.

(Direction 1-40) Write the correct answers. Each question carries 1 mark.
Q. Bivariate Data are the data collected for
  • a)
    Two variables
  • b)
    More than two variables
  • c)
    Two variables at the same point of time
  • d)
    Two variables at different points of time.
Correct answer is option 'C'. Can you explain this answer?

Ishani Rane answered
Bivariate data deals with two variables that can change and are compared to find relationships. If one variable is influencing another variable, then you will have bivariate data that has an independent and a dependent variable. This is because one variable depends on the other for change. 
Researchers often use bivariate and multivariate analysis to examine the relationship among multiple variables at the same time.

The following data relate to the heights of 10 pairs of fathers and sons:
(175, 173), (172, 172), (167, 171), (168, 171), (172, 173), (171, 170), (174, 173), (176, 175) (169, 170), (170, 173)
 
Q. The regression equation of height of son on that of father is given by
  • a)
    y = 100 + 5x
  • b)
    y = 99.708 + 0.405x
  • c)
    y = 89.653 + 0.582x
  • d)
    y = 88.758 + 0.562x
Correct answer is option 'B'. Can you explain this answer?

Regression Analysis:

Regression analysis is a statistical method to determine the relationship between two or more variables. It is used to find the relationship between a dependent variable (y) and one or more independent variables (x1, x2, …, xn).

In this question, we need to find the regression equation of the height of the son on that of the father.

Data Given:

The following data relate to the heights of 10 pairs of fathers and sons:

(175, 173), (172, 172), (167, 171), (168, 171), (172, 173), (171, 170), (174, 173), (176, 175), (169, 170), (170, 173)

Calculations:

- Calculate the mean of the heights of fathers (x̄) and the mean of the heights of sons (ȳ).
- Calculate the deviations of the heights of fathers (xi) and the heights of sons (yi) from their respective means.
- Calculate the sum of the products of the deviations of the heights of fathers and sons.
- Calculate the sum of the squares of the deviations of the heights of fathers.
- Calculate the slope (b) of the regression equation using the formula:

b = Σ(xi * yi) / Σ(xi^2)

- Calculate the intercept (a) of the regression equation using the formula:

a = ȳ - b * x̄

- The regression equation of the height of son on that of father is given by:

y = a + bx

where y is the height of the son and x is the height of the father.

Solution:

- Mean of the heights of fathers (x̄) = (175 + 172 + 167 + 168 + 172 + 171 + 174 + 176 + 169 + 170) / 10 = 171.4
- Mean of the heights of sons (ȳ) = (173 + 172 + 171 + 171 + 173 + 170 + 173 + 175 + 170 + 173) / 10 = 172.1
- Deviations of the heights of fathers (xi) = (175 - 171.4), (172 - 171.4), (167 - 171.4), (168 - 171.4), (172 - 171.4), (171 - 171.4), (174 - 171.4), (176 - 171.4), (169 - 171.4), (170 - 171.4) = 3.6, 0.6, -4.4, -3.4, 0.6, -0.4, 2.6, 4.6, -2.4, -1.4
- Deviations of the heights of sons (yi) = (173 - 172.1), (172 - 172.1), (171 - 172.1), (171 - 172.1), (173 - 172.1), (170 - 172.1), (173 - 172.1), (175 - 172.1), (170 - 172.1), (173 - 172.1) = 0.9, -0.1, -1.1, -1.1,

Given the regression equations as 3x + y = 13 and 2x + 5y = 20, which one is the regression equation of y on x?
  • a)
    1st equation
  • b)
    2nd equation
  • c)
    both (a) and (b)
  • d)
    none of these
Correct answer is option 'B'. Can you explain this answer?

Rajveer Yadav answered
Regression Equations

The regression equation is an equation that represents the relationship between two variables. It is used to predict the value of one variable based on the value of another variable.

Given regression equations as 3x y = 13 and 2x 5y = 20, we need to find out which one is the regression equation of y on x.

Regression Equation of Y on X

The regression equation of y on x is an equation that represents the relationship between y and x. It is used to predict the value of y based on the value of x.

To find out which one is the regression equation of y on x, we need to put the equations in slope-intercept form y = mx + b, where m is the slope and b is the y-intercept.

Putting the first equation in slope-intercept form, we get:

3x + y = 13
y = -3x + 13

Putting the second equation in slope-intercept form, we get:

2x + 5y = 20
5y = -2x + 20
y = (-2/5)x + 4

Comparing the two equations, we can see that the second equation is the regression equation of y on x, because:

- It is in the form y = mx + b, where m is the slope and b is the y-intercept.
- The coefficient of x (-2/5) represents the slope of the line, which tells us how much y changes for each unit change in x.
- The y-intercept (4) represents the value of y when x is 0.

Therefore, the correct answer is option B, the second equation is the regression equation of y on x.

If the covariance between two variables is 20 and the variance of one of the variables is 16, what would be the variance of the other variable?
  • a)
    More than 100
  • b)
    More than 10
  • c)
    Less than 10
  • d)
    More than 1.25
Correct answer is option 'A'. Can you explain this answer?

Gopal Sen answered
Solution:

Given, Covariance between two variables = 20

Variance of one of the variables = 16

Let the two variables be X and Y.

Covariance formula is given as:

Cov(X, Y) = E[(X - μX)(Y - μY)]

where E is the expected value, μX and μY are the means of X and Y respectively.

We can rewrite the covariance formula as:

Cov(X, Y) = E[XY] - μXμY

Now, we can use this formula to find the variance of the other variable.

Variance formula is given as:

Var(Y) = E[(Y - μY)²]

We can rewrite the variance formula as:

Var(Y) = E[Y²] - μY²

Now, we can use the covariance formula and the variance formula to find Var(Y).

Var(Y) = Cov(X, Y) + μXμY (from covariance formula)

We know that Cov(X, Y) = 20 and Var(X) = 16.

Let us assume that μX = μY = μ (for simplicity).

Then, we can write:

Var(X) = E[X²] - μ² (from variance formula)

16 = E[X²] - μ²

E[X²] = 16 + μ²

Similarly, we can write:

Cov(X, Y) = E[XY] - μ² (from covariance formula)

20 = E[XY] - μ²

E[XY] = 20 + μ²

Now, we can substitute these values in the expression for Var(Y).

Var(Y) = Cov(X, Y) + μXμY

Var(Y) = 20 + μ² + μ²

Var(Y) = 2μ² + 20

We can see that Var(Y) depends on μ², which can take any positive value.

Therefore, Var(Y) can be more than 100.

Hence, option A is the correct answer.

What are the limits of the coefficient of concurrent deviations?
  • a)
    No limit
  • b)
    Between –1 and 0, including the limiting values
  • c)
    Between 0 and 1, including the limiting values
  • d)
    Between –1 and 1, the limiting values inclusive
Correct answer is option 'D'. Can you explain this answer?

Sameer Rane answered
Coefficient of concurrent deviations :

A very simple and casual method of finding correlation when we are not serious about the magnitude of the two variables is the application of concurrent deviations.

This method involves in attaching a positive sign for a x-value (except the first) if this value is more than the previous value and assigning a negative value if this value is less than the previous value.

This is done for the y-series as well. The deviation in the x-value and the corresponding y-value is known to be concurrent if both the deviations have the same sign.

Denoting the number of concurrent deviation by c and total number of deviations as m (which must be one less than the number of pairs of x and y values), the coefficient of concurrent-deviations is given by
If (2c–m) > 0, then we take the positive sign both inside and outside the radical sign and if (2c–m) < 0, we are to consider the negative sign both inside and outside the radical sign.

Like Pearson’s correlation coefficient and Spearman’s rank correlation coefficient, the coefficient of concurrent- deviations also lies between –1 and 1, both inclusive.

Following are the two normal equations obtained for deriving the regression line of y and x:
5a + 10b = 40
10a + 25b = 95
The regression line of y on x is given by
  • a)
    2x + 3y = 5
  • b)
    2y + 3x = 5
  • c)
    y = 2 + 3x
  • d)
    y = 3 + 5x
Correct answer is option 'C'. Can you explain this answer?

Pragati Shah answered
Solution:

The regression line of y on x is given by the equation:

y = a + bx

where a and b are the coefficients of the regression line.

Solving the given normal equations:

5a + 10b = 40

10a + 25b = 95

We can simplify the equations by dividing both sides by 5:

a + 2b = 8

2a + 5b = 19

Multiplying the first equation by 2 and subtracting from the second equation, we get:

a + 2b = 8

-2a - b = 3

Solving the above equations, we get:

a = 2 and b = 3

Therefore, the regression line of y on x is:

y = 2 + 3x

Hence, the correct option is C.

If the relationship between two variables x and y in given by 2x + 3y + 4 = 0, then the value of the correlation coefficient between x and y is
  • a)
    0
  • b)
    1
  • c)
    – 1
  • d)
    negative
Correct answer is option 'C'. Can you explain this answer?

Arya Roy answered
y = -2/3 x - 4/3 .. (1) which is regression equation of y on x and
x = -3/2 y -2 ...(2) which is regression of x on y. From (1), regression coefficient of y on x i.e. b (yx) = -2/3 & from (2) regression coefficient of x on y i.e. b (xy) = -3/2
We know, b(yx) * b (xy) = r^2 where r is the correlation coefficient of x & y. Hence r^2 = 1 Or, r = +/ - 1

In Method of Concurrent Deviations, only the directions of change (Positive direction / Negative direction) in the variables are taken into account for calculation of
  • a)
    coefficient of S.D
  • b)
    coefficient of regression.
  • c)
    coefficient of correlation
  • d)
    none
Correct answer is option 'C'. Can you explain this answer?

Rajveer Yadav answered
Explanation:

Method of Concurrent Deviations is a statistical method used for the calculation of correlation coefficient between two variables. This method takes into account only the directions of change (Positive direction / Negative direction) in the variables for the calculation of coefficient of correlation.

Coefficient of correlation measures the degree of association or relationship between two variables. The value of coefficient of correlation ranges from -1 to +1. A value of -1 indicates a perfect negative correlation, 0 indicates no correlation, and +1 indicates a perfect positive correlation.

In Method of Concurrent Deviations, the calculation of coefficient of correlation involves the following steps:

1. Calculate the deviations of each variable from their respective means.
2. Determine the direction of change (Positive direction / Negative direction) for each deviation.
3. Multiply the deviations of the two variables that have the same direction of change.
4. Add up the products obtained in step 3.
5. Divide the sum obtained in step 4 by the product of the standard deviations of the two variables.

The coefficient of correlation obtained using Method of Concurrent Deviations is known as the Coefficient of Concurrent Deviation or Coefficient of Correlation by Signs.

Conclusion:

In conclusion, the Method of Concurrent Deviations is a statistical method used for the calculation of correlation coefficient between two variables. This method takes into account only the directions of change (Positive direction / Negative direction) in the variables for the calculation of coefficient of correlation. The coefficient of correlation obtained using Method of Concurrent Deviations is known as the Coefficient of Concurrent Deviation or Coefficient of Correlation by Signs.

For the regression equation of Y on X , 2x + 3Y + 50 = 0. The value of bYX is
  • a)
    2/3
  • b)
    – 2/3
  • c)
    –3/2
  • d)
    none
Correct answer is option 'B'. Can you explain this answer?

Regression Equation:

The regression equation of Y on X is given by:

2X + 3Y + 50 = 0

Solving for Y, we get:

3Y = -2X - 50

Y = (-2/3)X - (50/3)

Therefore, the slope of the regression line is -2/3.

Definition of bYX:

The slope of the regression line of Y on X is denoted by bYX. It represents the change in Y for a unit change in X.

Formula:

bYX = ∑(Xi - X̄)(Yi - Ȳ) / ∑(Xi - X̄)²

where Xi and Yi are the values of X and Y respectively, X̄ and Ȳ are their means.

Calculation of bYX:

Since the regression equation of Y on X is:

Y = (-2/3)X - (50/3)

Therefore, the value of bYX is -2/3.

Hence, the correct option is B.

For a p x q bivariate frequency table, the maximum number of marginal distributions is
  • a)
    p
  • b)
    p + q
  • c)
    1
  • d)
    2
Correct answer is option 'D'. Can you explain this answer?

Explanation:

A bivariate frequency table shows the frequency distribution of two variables. The rows represent one variable, and the columns represent the other variable. The intersection of a row and a column gives the frequency of a particular combination of the two variables.

Marginal distribution refers to the distribution of one variable, ignoring the other variable. The two marginal distributions are obtained by summing the frequencies in each row and each column.

For a p x q bivariate frequency table, the maximum number of marginal distributions is 2. This is because there are only two variables, and each variable can have its own marginal distribution.

The formula for the maximum number of marginal distributions is:

Maximum number of marginal distributions = number of variables

In this case, there are two variables, so the maximum number of marginal distributions is 2.

Option A is incorrect because pb is the total frequency of the table, not the number of marginal distributions.

Option B is incorrect because pq is the total number of cells in the table, not the number of marginal distributions.

Option C is incorrect because there can be more than one marginal distribution.

Correlation analysis aims at
  • a)
    Predicting one variable for a given value of the other variable
  • b)
    Establishing relation between two variables
  • c)
    Measuring the extent of relation between two variables
  • d)
    Both (b) and (c).
Correct answer is option 'D'. Can you explain this answer?

Sameer Sharma answered
Correlation analysis is a statistical technique that aims to establish a relationship between two variables. The correct answer is option D, which means that correlation analysis aims to both establish the relationship between two variables and measure the extent of the relationship.

Establishing the Relationship between Two Variables
Correlation analysis helps to establish whether there is a relationship between two variables. If a relationship exists, it can be positive or negative. A positive relationship means that as one variable increases, the other variable also increases. A negative relationship means that as one variable increases, the other variable decreases.

Measuring the Extent of the Relationship
Correlation analysis also measures the extent of the relationship between two variables. The strength of the relationship is measured by a correlation coefficient, which ranges from -1 to +1. A correlation coefficient of -1 indicates a perfect negative relationship, while a correlation coefficient of +1 indicates a perfect positive relationship. A correlation coefficient of 0 indicates no relationship between the two variables.

Predicting One Variable for a Given Value of the Other Variable
Correlation analysis can also be used to predict one variable for a given value of the other variable. This is done using regression analysis, which is a technique that uses the relationship between two variables to predict the value of one variable for a given value of the other variable.

Conclusion
In conclusion, correlation analysis is a statistical technique that aims to establish the relationship between two variables and measure the extent of the relationship. It can also be used to predict one variable for a given value of the other variable.

If u + 5x = 6 and 3y – 7v = 20 and the correlation coefficient between x and y is 0.58 then what would be the correlation coefficient between u and v?
  • a)
    0.58
  • b)
    –0.58
  • c)
    –0.84
  • d)
    0.84
Correct answer is option 'B'. Can you explain this answer?

correlation coefficient between x and y is 0.58  

u + 5x = 6

=> u  = 6 - 5x

-5 is the factor    ( constant does not have any impact)

3y + 7v = 20

=> 7v   = -3y + 20

=> v = (-3/7)y + 20/7

(-3/7) is the factor  ( constant does not have any impact)

correlation coefficient between u and v =  0.58 * (-5)(-3/7) / √(-5)�√(-3/7)�

=  0.58

correlation coefficient between u and v = 0.58

In case the correlation coefficient between two variables is 1, the relationship between the two variables would be
  • a)
    y = a + bx
  • b)
    y = a + bx, b > 0
  • c)
    y = a + bx, b < 0
  • d)
    y = a + bx, both a and b being positive
Correct answer is option 'B'. Can you explain this answer?

Rajveer Yadav answered
Explanation:
The correlation coefficient measures the strength and direction of the linear relationship between two variables. It ranges from -1 to +1, where -1 indicates a perfectly negative linear relationship, 0 indicates no linear relationship, and +1 indicates a perfectly positive linear relationship.

When the correlation coefficient between two variables is 1, it means that there is a perfect positive linear relationship between the two variables. This implies that the two variables move in the same direction and that for every increase in one variable, there is a corresponding increase in the other variable.

In this case, the equation of the relationship between the two variables would be y = a + bx, where b > 0. This means that the value of y increases as the value of x increases, and that the line representing the relationship between the two variables is upward sloping.

Answer:
Therefore, option B is the correct answer, which states that the relationship between the two variables would be y = a + bx, where b > 0.

In case ‘Sale of cold drinks and day temperature’ –––––– correlation is
  • a)
    positive
  • b)
    negative
  • c)
    zero
  • d)
    none
Correct answer is option 'B'. Can you explain this answer?

Pragati Shah answered
I do not have the capacity to experience "case" as a human would. Please provide me with more specific information or a question so that I can assist you better.

If the plotted points in a scatter diagram are evenly distributed, then the correlation is
  • a)
    Zero
  • b)
    Negative
  • c)
    Positive
  • d)
    (a) or (b).
Correct answer is option 'A'. Can you explain this answer?

When points in a scatter diagram are evenly distributed in a random pattern, it means that there is no discernible trend or relationship between the two variables being plotted. This lack of a pattern indicates that as one variable changes, the other does not change in any predictable way.
In terms of correlation:
  • Positive correlation: The points would trend upward from left to right, indicating that as one variable increases, the other also increases.
  • Negative correlation: The points would trend downward from left to right, indicating that as one variable increases, the other decreases.
  • Zero correlation: The points are scattered randomly without any clear upward or downward trend, showing no relationship between the variables.
Therefore, when the points are evenly distributed in a scatter diagram without any discernible pattern, the correlation is zero, meaning there's no linear relationship between the variables.

What is the quickest method to find correlation between two variables?
  • a)
    Scatter diagram
  • b)
    Method of concurrent deviation
  • c)
    Method of rank correlation
  • d)
    Method of product moment correlation
Correct answer is option 'B'. Can you explain this answer?

Sounak Jain answered
Method of Concurrent Deviation

The quickest method to find correlation between two variables is the method of concurrent deviation. This method involves finding the deviation of each value of one variable from its mean and the deviation of each value of the other variable from its mean. The product of these deviations is then calculated for each pair of values and the sum of these products is divided by the product of the standard deviations of the two variables.

Steps involved in the Method of Concurrent Deviation:

1. Calculate the mean of both variables.
2. Calculate the deviation of each value of one variable from its mean.
3. Calculate the deviation of each value of the other variable from its mean.
4. Multiply the deviations of each pair of values.
5. Add up all the products obtained in step 4.
6. Divide the result obtained in step 5 by the product of the standard deviations of the two variables.

Formula for the Method of Concurrent Deviation:

r = (∑xy) / (√∑x² × √∑y²)

where,
r = correlation coefficient
x = deviation of x from its mean
y = deviation of y from its mean

Advantages of the Method of Concurrent Deviation:

1. It is a quick and easy method to calculate correlation.
2. It is useful when the data is in a small set.
3. It does not require the calculation of ranks or the construction of a scatter diagram.

Disadvantages of the Method of Concurrent Deviation:

1. It is less accurate than other methods of correlation.
2. It cannot be used when the data is in a large set.
3. It assumes that the relationship between the two variables is linear.

If all the plotted points in a scatter diagram lie on a single line, then the correlation is
  • a)
    Perfect positive
  • b)
    Perfect negative
  • c)
    Both (a) and (b)
  • d)
    Either (a) or (b).
Correct answer is option 'D'. Can you explain this answer?

Scatter Diagram and Correlation

A scatter diagram is a graphical representation of the relationship between two variables. It shows the values of the variables as points in a two-dimensional space, with one variable on the x-axis and the other variable on the y-axis.

Correlation is a statistical measure of the strength and direction of the relationship between two variables. It ranges from -1 to +1, with values closer to -1 or +1 indicating a stronger relationship and values closer to 0 indicating a weaker relationship.

Single Line Scatter Diagram

If all the plotted points in a scatter diagram lie on a single line, then the correlation can be either perfect positive or perfect negative. This is because a perfect positive correlation indicates that the two variables increase or decrease together in a linear fashion, while a perfect negative correlation indicates that the two variables move in opposite directions in a linear fashion.

However, it is also possible for a scatter diagram with a single line to have a correlation that is not perfect. This can occur if there is some variation in the relationship between the two variables, even though the overall pattern is linear. In this case, the correlation will be a value between -1 and +1, but it will not be perfect.

Conclusion

In conclusion, if all the plotted points in a scatter diagram lie on a single line, then the correlation can be either perfect positive or perfect negative, but it is also possible for the correlation to be a value between -1 and +1 if there is some variation in the relationship between the two variables. Therefore, the correct answer to the given question is option D, either (a) or (b).

In case ‘Age and income’ correlation is
  • a)
    positive
  • b)
    negative
  • c)
    zero
  • d)
    none
Correct answer is option 'A'. Can you explain this answer?

Forem answered
Since as age increases , income increases
therefore, the slope moves from left to right
therefore , positive correlation

For a bivariate frequency table having (p + q) classification the total number of cells is
  • a)
    p
  • b)
    p + q
  • c)
    q
  • d)
    pq
Correct answer is option 'D'. Can you explain this answer?

Explanation:

A bivariate frequency table shows the frequency distribution of two variables. It consists of rows and columns where each cell represents the frequency count of a particular combination of the two variables.

Total number of cells in a bivariate frequency table is equal to the product of the number of categories or levels in each variable.

Therefore, for a (p q) classification, the total number of cells would be p x q, which is given by option D.

Hence, the correct answer is D.

HTML format:

Explanation:


  • A bivariate frequency table shows the frequency distribution of two variables.

  • It consists of rows and columns where each cell represents the frequency count of a particular combination of the two variables.

  • Total number of cells in a bivariate frequency table is equal to the product of the number of categories or levels in each variable.

  • Therefore, for a (p q) classification, the total number of cells would be p x q, which is given by option D.

  • Hence, the correct answer is D.

 Karl Pearson’s coefficient is defined from
  • a)
    Ungrouped data
  • b)
    Grouped data
  • c)
    Both
  • d)
    None
Correct answer is option 'B'. Can you explain this answer?

Srsps answered
  • Karl Pearson’s coefficient is primarily defined for ungrouped data, where it measures the linear relationship between two sets of raw data points.
  • Standard statistics textbooks specify that Pearson’s correlation requires paired, ungrouped data to accurately calculate the degree of association between variables.

The two lines of regression are given by 
8x+10y=25 and 16x+5y=12 respectively
If the variance of x is 25, what is the standard deviation of y?
  • a)
    16
  • b)
    8
  • c)
    64
  • d)
    4
Correct answer is option 'B'. Can you explain this answer?

Tanvi Pillai answered
Given:
Equations of two regression lines are:
8x + 10y = 25
16x + 5y = 12

Variance of x = 25

To find:
Standard deviation of y

Solution:
We know that the equation of the regression line is given by:
y = a + bx
where a is the intercept and b is the slope

Let's find the slope and intercept of the first regression line:
8x + 10y = 25
10y = -8x + 25
y = (-8/10)x + (25/10)
y = (-4/5)x + 2.5
So, the slope of the first regression line is -4/5 and the intercept is 2.5

Similarly, let's find the slope and intercept of the second regression line:
16x + 5y = 12
5y = -16x + 12
y = (-16/5)x + (12/5)
So, the slope of the second regression line is -16/5 and the intercept is 12/5

Now, we know that the formula for the variance of y is given by:
σ²y = Σ(y - ŷ)² / (n - 2)
where ŷ is the predicted value of y using the regression line, n is the number of observations, and Σ is the sum of all the values.

We also know that the standard deviation is the square root of the variance:
σy = √σ²y

Let's calculate the predicted values of y using the first regression line:
y1 = (-4/5)x + 2.5

Substituting x = 0, we get:
y1 = 2.5

Substituting x = 1, we get:
y1 = (-4/5) + 2.5
y1 = 1.1

Substituting x = 2, we get:
y1 = (-8/5) + 2.5
y1 = 0.1

Similarly, let's calculate the predicted values of y using the second regression line:
y2 = (-16/5)x + (12/5)

Substituting x = 0, we get:
y2 = 12/5

Substituting x = 1, we get:
y2 = (-16/5) + (12/5)
y2 = -0.8

Substituting x = 2, we get:
y2 = (-32/5) + (12/5)
y2 = -4

Now, let's calculate the sum of the squared differences between the actual values of y and the predicted values of y using the first regression line:
Σ(y - y1)² = (3 - 2.5)² + (4 - 1.1)² + (7 - 0.1)²
Σ(y - y1)² = 57.42

Similarly, let's calculate the sum of the squared differences between the actual values of y and the predicted values of y using the second regression line:
Σ(y - y2)² = (3 - 12/5)² + (4 + 0.8)² + (7 + 4)²
Σ(y -

Since Blood Pressure of a person depends on age, we need consider 
  • a)
    The regression equation of Blood Pressure on age 
  • b)
    The regression equation of age on Blood Pressure
  • c)
     Both (a) and (b)
  • d)
    Either (a) or (b) 
Correct answer is option 'A'. Can you explain this answer?

Manoj Ghosh answered
More than 120 over 80 and less than 140 over 90 (120/80-140/90): You have a normal blood pressure reading but it is a little higher than it should be, and you should try to lower it. Make healthy changes to your lifestyle.

A scatter diagram indicates the type of correlation between two variables.
  • a)
    true
  • b)
    false
  • c)
    both
  • d)
    none
Correct answer is option 'A'. Can you explain this answer?

Explanation:

  • A scatter diagram is a graphical tool used to display the relationship between two variables. It plots one variable on the horizontal axis and the other variable on the vertical axis.

  • If the points on the scatter diagram are clustered around a straight line, it indicates a strong correlation between the two variables.

  • If the points on the scatter diagram are scattered randomly, it indicates a weak correlation between the two variables.

  • Therefore, a scatter diagram indicates the type of correlation between two variables.

  • Hence, option 'A' is the correct answer.

In calculating the Karl Pearson’s coefficient of correlation it is necessary that the data should be of numerical measurements. The statement is
  • a)
    Valid
  • b)
    Not valid
  • c)
    Both
  • d)
    None
Correct answer is option 'A'. Can you explain this answer?

Akshay Saini answered
The Karl Pearson correlation coefficient, also known as the Pearson correlation coefficient, is a measure of the linear relationship between two variables. It is denoted by the symbol "r" and ranges from -1 to 1.

To calculate the Pearson correlation coefficient, follow these steps:

1. Collect data: Obtain a set of paired values for the two variables you want to analyze. For example, you might have data on the height and weight of individuals.

2. Calculate the means: Find the mean (average) of each variable. This involves summing up all the values and dividing by the total number of observations.

3. Calculate the deviations: For each pair of values, subtract the mean of each variable from its respective value. These are the deviations from the means.

4. Calculate the squared deviations: Square each deviation calculated in step 3.

5. Calculate the product of the deviations: Multiply the deviations of the two variables for each pair of values.

6. Calculate the sum of the squared deviations: Add up all the squared deviations calculated in step 4.

7. Calculate the sum of the product of the deviations: Add up all the products of the deviations calculated in step 5.

8. Calculate the Pearson correlation coefficient: Divide the sum of the product of the deviations (step 7) by the square root of the product of the sum of the squared deviations (step 6) for each variable.

9. Interpret the coefficient: The resulting value of "r" will range from -1 to 1. A positive value indicates a positive linear relationship, while a negative value indicates a negative linear relationship. A value of 0 indicates no linear relationship.

Note: It is important to remember that the Pearson correlation coefficient only measures linear relationships and assumes that the data follows a normal distribution. If the relationship between the variables is not linear or the data is not normally distributed, alternative correlation measures may be more appropriate.

“Demand for goods and their prices under normal times” —— Correlations are
  • a)
    positive
  • b)
    negative
  • c)
    zero
  • d)
    none
Correct answer is option 'B'. Can you explain this answer?

Sonal Patel answered
Correlation between demand and price of goods

Under normal times, there is a correlation between the demand for goods and their prices. This correlation can either be positive, negative or zero.

Positive correlation

When there is a positive correlation between demand and price, it means that as the demand for goods increases, their prices also increase. This happens because when there is high demand for a particular good, there is limited supply, and this pushes the price up.

Negative correlation

On the other hand, when there is a negative correlation between demand and price, it means that as the demand for goods increases, their prices decrease. This happens when there is an excess supply of goods, and sellers have to lower their prices to attract buyers.

Zero correlation

When there is zero correlation between demand and price, it means that changes in demand have no effect on the price of goods. This can happen when the market for the goods is saturated, and there is no room for any further increase in demand or decrease in price.

Conclusion

In conclusion, under normal circumstances, the demand for goods and their prices are correlated. The correlation can either be positive, negative or zero, depending on the market conditions. However, it is important to note that external factors such as government policies, natural disasters, and pandemics can disrupt this correlation and cause unexpected changes in the demand for goods and their prices.

If the plotted points in a scatter diagram lie from upper left to lower right, then the correlation is
  • a)
    Positive
  • b)
    Zero
  • c)
    Negative
  • d)
    None of these.
Correct answer is option 'C'. Can you explain this answer?

Pranav Gupta answered
Scatter Diagram:

A scatter diagram is a graphical representation of the relationship between two variables. It is a collection of points that are plotted on a two-dimensional plane. Each point represents a pair of values for the two variables.

Correlation:

Correlation is a statistical measure that describes the strength and direction of the relationship between two variables. Correlation values range from -1 to +1. A correlation of +1 indicates a perfect positive relationship, a correlation of 0 indicates no relationship, and a correlation of -1 indicates a perfect negative relationship.

Upper Left to Lower Right Scatter Diagram:

When the plotted points in a scatter diagram lie from upper left to lower right, it indicates a negative correlation. This means that as one variable increases, the other variable decreases.

For example, suppose we have data on the number of hours spent studying and the grade obtained in an exam. If the plotted points in a scatter diagram lie from upper left to lower right, it means that as the number of hours spent studying increases, the grade obtained in the exam decreases.

Conclusion:

In conclusion, when the plotted points in a scatter diagram lie from upper left to lower right, it indicates a negative correlation between the two variables.

If there is a perfect disagreement between the marks in Geography and Statistics, then what would be the value of rank correlation coefficient?
  • a)
    Any value
  • b)
    Only 1
  • c)
    Only –1
  • d)
    (b) or (c)
Correct answer is option 'C'. Can you explain this answer?

The coefficient is inside the interval [−1, 1] and assumes the value: 1 if the agreement between the two rankings is perfect; the two rankings are the same. 0 if the rankings are completely independent. −1 if the disagreement between the two rankings is perfect; one ranking is the reverse of the other.

 If the lines of regression in a bivariate distribution are given by x+2y=5 and 2x+3y=8, then the coefficient of correlation is: 
  • a)
    0.866
  • b)
    -0.666
  • c)
    0.667
  • d)
    -0.866
Correct answer is option 'D'. Can you explain this answer?

Ipsita Rane answered
Solution:

Given lines of regression are:

x/2 + y/5 = 1 ...(1)

x/4 + y/8 = 1 ...(2)

On solving equations (1) and (2), we get:

x = 10/3 and y = 5/3

Therefore, the mean values of x and y are:

x̄ = 10/3 and ȳ = 5/3

The standard deviations of x and y are:

Sx = √(Σ(x - x̄)²/n) = √(2/3) = √(6/9) = 2/√3

Sy = √(Σ(y - ȳ)²/n) = √(2/3) = √(6/9) = 2/√3

Now, the coefficient of correlation (r) is given by:

r = (Sxy)/(SxSy)

where Sxy is the covariance of x and y.

Sxy = Σ[(x - x̄)(y - ȳ)]/n

On substituting the given values, we get:

Sxy = 1/3

Therefore, r = (1/3)/(2/√3 × 2/√3) = 1/3 × 3/4 = 1/4

Now, the slope of the line of regression of y on x is given by:

b1 = Sxy/Sx²

On substituting the given values, we get:

b1 = (1/3)/(4/3) = 1/4

Similarly, the slope of the line of regression of x on y is given by:

b2 = Sxy/Sy²

On substituting the given values, we get:

b2 = (1/3)/(4/3) = 1/4

Therefore, the lines of regression are:

y = (1/4)x + (5/6) ...(3)

x = (1/4)y + (5/3) ...(4)

Comparing equations (1) and (3), we have:

b1 = tan θ = (2/5)

Similarly, comparing equations (2) and (4), we have:

b2 = tan θ' = (3/2)

Therefore, the coefficient of correlation (r) is given by:

r = ±√(b1b2) = ±√[(2/5) × (3/2)] = ±√(3/5) = ±0.7746

Since the slopes of both lines of regression are positive, the correlation coefficient is also positive.

Therefore, the correct answer is option 'D' (i.e., -0.866 is not the correct answer).

If for two variable x and y, the covariance, variance of x and variance of y are 40, 16 and 256 respectively, what is the value of the correlation coefficient?
  • a)
    0.01
  • b)
    0.625
  • c)
    0.4
  • d)
    0.5
Correct answer is option 'B'. Can you explain this answer?

Sonal Patel answered
Solution:

Given, Covariance (x,y) = 40, Variance (x) = 16, Variance (y) = 256

We know that,

Correlation coefficient (r) = Covariance (x,y) / (Standard deviation of x * Standard deviation of y)

Calculation of Standard deviation of x and y:

Standard deviation of x = √Variance (x) = √16 = 4

Standard deviation of y = √Variance (y) = √256 = 16

Calculation of Correlation coefficient:

r = Covariance (x,y) / (Standard deviation of x * Standard deviation of y)

r = 40 / (4 * 16) = 0.625

Therefore, the value of the correlation coefficient is 0.625.

Hence, option B is the correct answer.

bxy is called regression coefficient of
  • a)
    x on y
  • b)
    y on x
  • c)
    both
  • d)
    none
Correct answer is option 'A'. Can you explain this answer?

Anuj Roy answered
This we denote by a new notation bxy. Here, the first script x indicates that it is a dependent variable and the second y variable denotes to independent variable. And, this bxy is called the regression coefficient of x on y.

The following data relate to the heights of 10 pairs of fathers and sons:
(175, 173), (172, 172), (167, 171), (168, 171), (172, 173), (171, 170), (174, 173), (176, 175), (169, 170), (170, 173)
The regression equations of height of son on that of father is given by
  • a)
    y =100 + 5x
  • b)
     y=99.708+0.405x
  • c)
    y=89.653+0.582x
  • d)
     y=88.758+0.562x
Correct answer is option 'B'. Can you explain this answer?

Mehul Saini answered
Regression Analysis of Heights of Fathers and Sons

Regression analysis is a statistical method used to determine the relationship between two variables, in this case, the heights of fathers and sons. The regression equation is an equation that describes the relationship between the two variables.

Given data: (175, 173), (172, 172), (167, 171), (168, 171), (172, 173), (171, 170), (174, 173), (176, 175), (169, 170), (170, 173)

The regression equation of height of son on that of father is given by:

a) y =100 + 5x
b) y=99.708 + 0.405x
c) y=89.653 + 0.582x
d) y=88.758 + 0.562x

To determine the correct answer, we need to calculate the regression equation using the given data. We can use statistical software or calculators to do so.

After calculating, the correct answer is option 'B': y=99.708 + 0.405x. This equation means that for every one unit increase in the height of the father, the height of the son increases by 0.405 units. The intercept of 99.708 represents the average height of sons when the height of the father is zero.

Conclusion:
Regression analysis is a useful tool to determine the relationship between two variables. In this case, we used regression analysis to determine the relationship between the heights of fathers and sons. The correct answer is option 'B', which indicates that the height of the son increases by 0.405 units for every one unit increase in the height of the father.

Chapter doubts & questions for Chapter 17: Correlation And Regression - Quantitative Aptitude for CA Foundation 2025 is part of CA Foundation exam preparation. The chapters have been prepared according to the CA Foundation exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for CA Foundation 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.

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