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Correlation And Regression- 4 - Free MCQ Practice Test with solutions,


MCQ Practice Test & Solutions: Test: Correlation And Regression- 4 (40 Questions)

You can prepare effectively for CA Foundation Quantitative Aptitude for CA Foundation with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Correlation And Regression- 4". These 40 questions have been designed by the experts with the latest curriculum of CA Foundation 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 40 minutes
  • - Number of Questions: 40

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Test: Correlation And Regression- 4 - Question 1

(Direction 1 - 5) Write down the correct answers. Each question carries 5 marks.

Q. For y = 25, what is the estimated value of x, from the following data:

Detailed Solution: Question 1

 

Step 1: Calculate Mean of X and Y

Mean of X: (11 + 12 + 15 + 16 + 18 + 19 + 21) / 7 = 112 / 7 = 16
Mean of Y: (21 + 15 + 13 + 12 + 11 + 10 + 9) / 7 = 91 / 7 = 13

Step 2: Regress X on Y

Use the formula for regression line: x = a + b*y

First, calculate slope:
b = Σ[(y - 13)(x - 16)] / Σ[(y - 13)²] = -81 / 98 ≈ -0.8265
Then intercept:
a = mean_x - b * mean_y = 16 - (-0.8265 × 13) = 16 + 10.7445 = 26.7445

Step 3: Estimate X for Y = 25

x = 26.7445 - 0.8265 × 25 = 26.7445 - 20.6625 = 13.926

Test: Correlation And Regression- 4 - Question 2

Given the following data:

 

Q. What is the most likely value of y when x = 90 ?

Test: Correlation And Regression- 4 - Question 3

The two lines of regression are given by

8x + 10y = 25 and 16x + 5y = 12 respectively.

 

Q. If the variance of x is 25, what is the standard deviation of y?

Test: Correlation And Regression- 4 - Question 4

Given below the information about the capital employed and profit earned by a company over the last twenty five years:

 

Q. Correlation Coefficient between capital and profit = 0.92. The sum of the Regression coefficients for the above data would be:

Test: Correlation And Regression- 4 - Question 5

The coefficient of correlation between cost of advertisement and sales of a product on the basis of the following data:

Detailed Solution: Question 5

Correct option: C. The computed coefficient of correlation is approximately 0.949, which rounds to 0.95.

Formula: The Pearson correlation coefficient is given by r = [n·Σxy - (Σx)(Σy)] / √{[n·Σx² - (Σx)²][n·Σy² - (Σy)²]}.

Number of observations: n = 8.

Computed sums: Σx = 798, Σy = 518, Σxy = 54488, Σx² = 82120, Σy² = 37040.

Numerator: n·Σxy - (Σx)(Σy) = 8·54488 - 798·518 = 22540.

Denominator components: n·Σx² - (Σx)² = 8·82120 - 798² = 20156; n·Σy² - (Σy)² = 8·37040 - 518² = 27996.

Denominator: √(20156·27996) = √56428737623754.7.

Correlation coefficient: r = 22540 / 23754.7 ≈ 0.94870.95. Therefore option C is correct.

Test: Correlation And Regression- 4 - Question 6

–—————— is concerned with the measurement of the “strength of association” between variables.

Test: Correlation And Regression- 4 - Question 7

—————— gives the mathematical relationship of the variables.

Test: Correlation And Regression- 4 - Question 8

When high values of one variable are associated with high values of the other & low values of one variable are associated with low values of another, then they are said to be

Test: Correlation And Regression- 4 - Question 9

If high values of one tend to low values of the other, they are said to be

Test: Correlation And Regression- 4 - Question 10

Correlation coefficient between two variables is a measure of their linear relationship .

Test: Correlation And Regression- 4 - Question 11

Correlation coefficient is dependent of the choice of both origin & the scale of observations.

Test: Correlation And Regression- 4 - Question 12

Correlation coefficient is a pure number.

Test: Correlation And Regression- 4 - Question 13

Correlation coefficient is —————— of the units of measurement.

Test: Correlation And Regression- 4 - Question 14

The value of correlation coefficient lies between

Test: Correlation And Regression- 4 - Question 15

Correlation coefficient can be found out by

Test: Correlation And Regression- 4 - Question 16

Covariance measures _________ variations of two variables.

Test: Correlation And Regression- 4 - Question 17

In calculating the Karl Pearson’s coefficient of correlation it is necessary that the data should be of numerical measurements. The statement is

Test: Correlation And Regression- 4 - Question 18

Rank correlation coefficient lies between

Test: Correlation And Regression- 4 - Question 19

A coefficient near +1 indicates tendency for the larger values of one variable to be associated with the larger values of the other.

Test: Correlation And Regression- 4 - Question 20

In rank correlation coefficient the association need not be linear.

Test: Correlation And Regression- 4 - Question 21

In rank correlation coefficient only an increasing/decreasing relationship is required.

Test: Correlation And Regression- 4 - Question 22

Great advantage of ____________ is that it can be used to rank attributes which can not be expressed by way of numerical value.

Test: Correlation And Regression- 4 - Question 23

The sum of the difference of rank is

Test: Correlation And Regression- 4 - Question 24

Karl Pearson’s coefficient is defined from

Test: Correlation And Regression- 4 - Question 25

Correlation methods are used to study the relationship between two time series of data which are recorded annually, monthly, weekly, daily and so on.

Test: Correlation And Regression- 4 - Question 26

Age of Applicants for life insurance and the premium of insurance – correlations are

Test: Correlation And Regression- 4 - Question 27

“Unemployment index and the purchasing power of the common man“ ——Correlations are

Test: Correlation And Regression- 4 - Question 28

Production of pig iron and soot content in Durgapur – Correlations are

Test: Correlation And Regression- 4 - Question 29

“Demand for goods and their prices under normal times” —— Correlations are

Test: Correlation And Regression- 4 - Question 30

___________ is a relative measure of association between two or more variables.

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