CA Foundation Exam > CA Foundation Questions > (Direction 3 - 26)Answer the following questi...
Start Learning for Free
(Direction 3 - 26) Answer the following questions by writing the correct answers. Each question carries 2 marks.
Q. 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?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
(Direction 3 - 26)Answer the following questions by writing the correc...
The correlation coefficient measures the strength and direction of the linear relationship between two variables. It is denoted by the symbol 'r'.
Given:
Covariance (cov) = 40
Variance (var) of x = 16
Variance (var) of y = 256
We can use the formula for the correlation coefficient to find its value.
Calculation:
1. Calculate the standard deviation of x and y:
Standard deviation (SD) of x = √var(x) = √16 = 4
Standard deviation (SD) of y = √var(y) = √256 = 16
2. Calculate the correlation coefficient (r):
r = cov / (SD of x * SD of y)
r = 40 / (4 * 16)
r = 40 / 64
r = 0.625
Therefore, the value of the correlation coefficient is 0.625.
Explanation of the steps:
1. Standard deviation (SD) is calculated by taking the square root of the variance. In this case, the variance of x is given as 16, so the standard deviation of x is √16 = 4. Similarly, the variance of y is given as 256, so the standard deviation of y is √256 = 16.
2. The correlation coefficient is calculated using the formula r = cov / (SD of x * SD of y). The covariance is given as 40. Plugging in the values, we get r = 40 / (4 * 16) = 0.625.
Interpretation:
The correlation coefficient ranges from -1 to +1. A positive value indicates a positive linear relationship between the variables, while a negative value indicates a negative linear relationship. The closer the value is to 1 or -1, the stronger the relationship. In this case, the correlation coefficient is 0.625, which indicates a moderately strong positive linear relationship between the variables x and y.
Summary:
The value of the correlation coefficient for the given variables x and y is 0.625, indicating a moderately strong positive linear relationship between them.
Given:
Covariance (cov) = 40
Variance (var) of x = 16
Variance (var) of y = 256
We can use the formula for the correlation coefficient to find its value.
Calculation:
1. Calculate the standard deviation of x and y:
Standard deviation (SD) of x = √var(x) = √16 = 4
Standard deviation (SD) of y = √var(y) = √256 = 16
2. Calculate the correlation coefficient (r):
r = cov / (SD of x * SD of y)
r = 40 / (4 * 16)
r = 40 / 64
r = 0.625
Therefore, the value of the correlation coefficient is 0.625.
Explanation of the steps:
1. Standard deviation (SD) is calculated by taking the square root of the variance. In this case, the variance of x is given as 16, so the standard deviation of x is √16 = 4. Similarly, the variance of y is given as 256, so the standard deviation of y is √256 = 16.
2. The correlation coefficient is calculated using the formula r = cov / (SD of x * SD of y). The covariance is given as 40. Plugging in the values, we get r = 40 / (4 * 16) = 0.625.
Interpretation:
The correlation coefficient ranges from -1 to +1. A positive value indicates a positive linear relationship between the variables, while a negative value indicates a negative linear relationship. The closer the value is to 1 or -1, the stronger the relationship. In this case, the correlation coefficient is 0.625, which indicates a moderately strong positive linear relationship between the variables x and y.
Summary:
The value of the correlation coefficient for the given variables x and y is 0.625, indicating a moderately strong positive linear relationship between them.
Free Test
FREE
| Start Free Test |
Community Answer
(Direction 3 - 26)Answer the following questions by writing the correc...
R = (cov x,y )
_____
sx² . sy²
= 256
____
40². 16²
= 256
____
1600 . 256
= 256
_____
409600
= 0.000625
_____
sx² . sy²
= 256
____
40². 16²
= 256
____
1600 . 256
= 256
_____
409600
= 0.000625
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
(Direction 3 - 26)Answer the following questions by writing the correct answers. Each question carries 2 marks.Q.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)0.01b)0.625c)0.4d)0.5Correct answer is option 'B'. Can you explain this answer?
Question Description
(Direction 3 - 26)Answer the following questions by writing the correct answers. Each question carries 2 marks.Q.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)0.01b)0.625c)0.4d)0.5Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about (Direction 3 - 26)Answer the following questions by writing the correct answers. Each question carries 2 marks.Q.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)0.01b)0.625c)0.4d)0.5Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for (Direction 3 - 26)Answer the following questions by writing the correct answers. Each question carries 2 marks.Q.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)0.01b)0.625c)0.4d)0.5Correct answer is option 'B'. Can you explain this answer?.
(Direction 3 - 26)Answer the following questions by writing the correct answers. Each question carries 2 marks.Q.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)0.01b)0.625c)0.4d)0.5Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about (Direction 3 - 26)Answer the following questions by writing the correct answers. Each question carries 2 marks.Q.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)0.01b)0.625c)0.4d)0.5Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for (Direction 3 - 26)Answer the following questions by writing the correct answers. Each question carries 2 marks.Q.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)0.01b)0.625c)0.4d)0.5Correct answer is option 'B'. Can you explain this answer?.
Solutions for (Direction 3 - 26)Answer the following questions by writing the correct answers. Each question carries 2 marks.Q.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)0.01b)0.625c)0.4d)0.5Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of (Direction 3 - 26)Answer the following questions by writing the correct answers. Each question carries 2 marks.Q.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)0.01b)0.625c)0.4d)0.5Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
(Direction 3 - 26)Answer the following questions by writing the correct answers. Each question carries 2 marks.Q.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)0.01b)0.625c)0.4d)0.5Correct answer is option 'B'. Can you explain this answer?, a detailed solution for (Direction 3 - 26)Answer the following questions by writing the correct answers. Each question carries 2 marks.Q.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)0.01b)0.625c)0.4d)0.5Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of (Direction 3 - 26)Answer the following questions by writing the correct answers. Each question carries 2 marks.Q.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)0.01b)0.625c)0.4d)0.5Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice (Direction 3 - 26)Answer the following questions by writing the correct answers. Each question carries 2 marks.Q.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)0.01b)0.625c)0.4d)0.5Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup