Worksheet: Correlation

## Multiple Choice Questions

Q1: If all the points lie on the same downward sloping line, the correlation is said to be
(a) perfect correlation
(b) perfect positive correlation
(c) perfect negative correlation
(d) negative correlation

Q2: Correlation is an analysis of ____ between two or more variables.
(a) relationship
(b) covariation
(c) determination
(d) calculation

Q3: Scatter diagram can be used to indicate which of the following degrees of correlation?
(a) Perfect positive correlation
(b) Perfect negative correlation
(c) No correlation
(d) All of the above

Q4: Which of the following techniques deals with the association between two or more variables?
(a) Index number
(b) Correlation
(c) Dispersion
(d)None of these

Q5: When the mean of series is a decimal number, then which method should be used for computing Karl Pearson’s coefficient of correlation?
(a) Direct Method
(b) Short-cut Method
(c) Step Deviation Method
(d) None of these

Q6: When two variables move together in the same direction, it is said to be
(a) no correlation
(b) negative correlation
(c) positive correlation
(d) zero correlation

Q7: The coefficient of correlation is independent of
(a) change of scale only
(b) change of origin only
(c) both change of scale and origin
(d) None of the above

Q8: A modified version of Karl Pearson’s formula is
(a) r=∑xy/∑x2.∑y2
(b) r= ∑xy/√∑x2x∑y2
(c) r= ∑xy/n∑x2·∑y2
(d) r= ∑xy/nδx·δy

Q9: Karl Pearson’s coefficient of correlation indicates the ...... and also the degree of relationship between the two variables.
(a) direction
(b) relation
(c) interpretation
(d) None of these

Q10: Which of the following pair is correctly matched?
Codes
(a) A–(i)
(b) B–(ii)
(c) C–(iii)
(d) None of these

Q11: Statement I Correlation is a multivariate analysis.
Statement II Partial correlation considers all other variables to be constant.
Alternatives
(a) Statement I is correct and Statement II is incorrect
(b) Statement II is correct and Statement I is incorrect
(c) Both the statements are correct
(d) Both the statements are incorrect

Q12: The minimum limit of correlation under Karl Pearson’s method is
(a) −1
(b) 0
(c) 1
(d) None of these

Q13: If the dots in a scatter diagram fall on a narrow band, it indicates a ..........degree of correlation.
(a) zero
(b) high
(c) low
(d) None of these

Q14: Statement I Non-linear correlation is also called curvy linear correlation.
Statement II Numerical measure of correlation is called coefficient of determination.
Alternatives
(a) Statement I is correct and Statement II is incorrect
(b) Statement II is correct and Statement I is incorrect
(c) Both the statements are correct
(d) Both the statements are incorrect

Q15: Coefficient of correlation lies between
(a) 0 and +1
(b) 0 and –1
(c) –1 and +1
(d) – 3 and +3

### Assertion–Reasoning based  MCQs

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Both Assertion (A) and Reason (R) are false
Q1: Assertion (A) Correlation analysis is a means for examining inter relationships systematically.
Reason (R) Causation explain the cause and effect relationship between variables.

Q2: Assertion (A) Sale of ice-cream increases during summer, shows positive correlation.
Reason (R) When two variables move in same direction, it shows positive correlation.

Q3: Assertion (A) Broadly, there only two types of correlation i.e., positive and negative.
Reason (R) The correlation is said to be positive when the variables move together in the same direction, the correlation is negative when they move in opposite directions.

Q4: Assertion (A) Karl Pearson’s method is non-mathematical in nature.
Reason (R)Degree of correlation helps in identifying the nature of correlation between variables.

## Case Study Questions Measures of Correlation

Coefficient of correlation is an important statistical tool which is used to measure the relationship between two variables. This is not only useful in the field of statistics but also used in other disciplines like Economics, Geography, Psychology.
In the present time due to the outbreak of Covid-19 corona virus, demand has gradually come down in almost all areas. As per the latest estimates, demand for car has decreased after the nationwide lockdown is lifted in phased manner.
Q1: If one variable change exactly in the reverse direction of the other variable, ........... should be the degree of correlation.
(a) positive correlation
(b) negative correlation
(c) perfect positive correlation
(d) perfect negative correlation

Q2: Which method of calculating correlation uses actual mean?
(a) Karl Pearson’s coefficient of correlation
(b) Scatter diagram method
(c) Spearman’s rank correlation method
(d) Both (a) and (c)

Q3: In perfect positive correlation, the value of ‘r’ is____.
(a) –1
(b) 0
(c) 1
(d) infinity

Q4: Which of the following tools can be used to know the pattern of demand during lockdown?
(a) Correlation
(b) Causation
(c) Both (a) and (b)
(d) Neither (a) nor (b)

Q5: What will be the coefficient of correlation between demand for car and varied level of income due to nationwide lockdown?
(a) Positive correlation
(b) Negative correlation
(c) Perfect positive correlation
(d) No correlation

Q6: The correlation between using mask and being injected by the virus will be
(a) positive
(b) negative
(c) Not correlated
(d) Either (a) or (b)

Q1: Why is ‘r’ preferred to covariance as a measure of association?

Q2: What do you understand by ‘spurious’ or ‘non-sense’ correlation?

Q3: Give the advantages of Karl Pearson’s coefficient of correlation.

Q4: List some variables where accurate measurement is difficult.

Q5: Interpret the values of r as 1, –1 and 0.

Q6: Can r lie outside the −1 and 1 range depending on the type of data?

Q7: Give the disadvantages of Karl Pearson’s coefficient of correlation.

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## Economics Class 11

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