Commerce MCQs
Topic Notes: Commerce
MCQs and preparation resources for competitive exams, covering important concepts, past papers, and detailed explanations.
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
171
Calculate the coefficient of alienation if the correlation coefficient (r) is 0.8.
Answer:
0.6
The coefficient of alienation is calculated as the square root of (1 - r^2). Given r = 0.8, then r^2 = 0.64. Therefore, 1 - 0.64 = 0.36. The square root of 0.36 is 0.6. This coefficient represents the proportion of variance in one variable that is not explained by the other variable.
172
Which of the following is not a recognized method for studying the association of attributes?
Answer:
Concurrent Deviation Method
The Concurrent Deviation Method is a technique used to measure correlation between two variables based on the direction of their changes, not for studying the association of attributes. Methods like Yule's coefficient of association and the coefficient of contingency are specifically designed to analyze the relationship between qualitative attributes.
173
If one of the two regression coefficients is greater than one, what must be true about the other coefficient?
Answer:
Less than one
The product of the two regression coefficients (bxy * byx) is equal to the square of the correlation coefficient (r^2). Since the maximum value of r^2 is 1, if one coefficient is greater than 1, the other must be less than 1 to ensure their product remains between 0 and 1.
174
What statistical value indicates the ratio of an estimated coefficient to its standard error, often used to test the significance of the coefficient?
Answer:
t-value
The t-value is a critical statistic in regression analysis. It measures how many standard errors the estimated coefficient is away from zero. A higher absolute t-value suggests that the independent variable has a statistically significant relationship with the dependent variable, assuming the null hypothesis is that the coefficient is zero.
175
Probable error in statistics is obtained by
Answer:
$$0.6745\frac{{1 - {r^2}}}{{\sqrt N }}$$
Source answer preserved: option C ($$0.6745\frac{{1 - {r^2}}}{{\sqrt N }}$$). AI attempted to change protected answer data (option_b, option_c, option_d), so this item is flagged for manual review before study use.
176
If the two regression coefficients are 0.8 and 0.2, what is the value of the coefficient of correlation?
Answer:
+0.40
The correlation coefficient (r) is the geometric mean of the two regression coefficients (b_xy and b_yx). Thus, r = √(0.8 * 0.2) = √0.16 = 0.40. Since both coefficients are positive, the correlation is positive.
177
Given a Karl Pearson correlation coefficient of -0.75, a covariance of -15, and a standard deviation of series Y equal to 5, what is the standard deviation of series X?
Answer:
4
The formula for the correlation coefficient (r) is Cov(X,Y) / (SDx * SDy). Substituting the given values: -0.75 = -15 / (SDx * 5). This simplifies to -0.75 = -15 / (5 * SDx), which leads to -3.75 * SDx = -15. Solving for SDx gives 15 / 3.75 = 4.
178
If the residual error is 25 and the predicted cost value is 50, what is the observed cost value?
Answer:
75
The observed cost value is the sum of the predicted cost value and the residual error. Mathematically, Observed Value = Predicted Value + Residual. Given a predicted value of 50 and a residual of 25, the calculation is 50 + 25, resulting in an observed value of 75. This relationship demonstrates how the actual data point deviates from the regression line by the amount of the residual.
179
What is the standard formula for calculating the product-moment correlation coefficient (r)?
Answer:
Σxy/N.σx.σy
The Pearson product-moment correlation coefficient (r) measures the linear correlation between two variables. It is calculated by dividing the sum of the products of the deviations of X and Y from their respective means (Σxy) by the product of the number of observations (N) and the standard deviations of X and Y (σx and σy).
180
Which statistical technique is appropriate for estimating a person's height based on their known weight?
Answer:
Regression problem
Regression analysis is the statistical method used to model the relationship between a dependent variable and one or more independent variables. In this scenario, weight is used as the independent variable to predict the value of the dependent variable, height. While correlation measures the strength of the relationship, regression provides the mathematical equation necessary to predict or estimate specific values.