Test: Correlation And Regression- 4 - CA Foundation MCQ

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:

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

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

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

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

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

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

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

Correlation coefficient is a pure number.

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

The value of correlation coefficient lies between

Correlation coefficient can be found out by

Covariance measures _________ variations of two variables.

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

Rank correlation coefficient lies between

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

In rank correlation coefficient the association need not be linear.

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

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

The sum of the difference of rank is

Karl Pearson’s coefficient is defined from

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

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

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

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

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

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