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
181
Evaluate the following assertion and reason: Assertion (A): The two lines of regression can never be parallel. Reason (R): The two lines of regression always pass through the common point (x, y).
Answer:
Both (A) and (R) are true and (R) is the correct explanation of (A)
Regression lines represent the relationship between variables and must intersect at the point of the means of the variables. Because they share this common intersection point, they cannot be parallel unless the correlation coefficient is zero, in which case they are perpendicular.
182
The square root of the product of two regression coefficients provides which statistical measure?
Answer:
Regression
The correlation coefficient (r) is defined as the geometric mean of the two regression coefficients, bxy and byx. Mathematically, r = ±√(bxy * byx). Therefore, the square root of the product of these coefficients yields the correlation coefficient.
183
When the correlation coefficient (r) is zero, what is the geometric relationship between the two regression lines?
Answer:
None of them
When the correlation coefficient (r) is zero, the two regression lines (Y on X and X on Y) are perpendicular to each other, meaning they intersect at a 90-degree angle. Since the provided answer key is D, it conflicts with standard statistical theory which dictates they are at 90 degrees. This may be due to a misinterpretation of the options provided.
184
In the method of least squares, what condition must the regression line satisfy regarding the sum of squared deviations?
Answer:
Minimum
The method of least squares is a mathematical procedure used to find the best-fitting line through a set of data points. It works by minimizing the sum of the squares of the vertical deviations (residuals) between the observed data points and the fitted regression line.
185
Given an observed cost value of 62 and a predicted cost value of 29 in a regression analysis, what is the resulting disturbance term?
Answer:
33
The disturbance term, or residual, represents the difference between the actual observed value and the value predicted by the regression model. It is calculated as the observed value minus the predicted value. In this case, 62 minus 29 equals 33. This residual captures the portion of the dependent variable that the model fails to explain, reflecting random error or omitted variables in the analysis.
186
In regression analysis, what are the alternative terms used to describe the dependent variable?
Answer:
All of these
In statistical regression models, the dependent variable is the outcome being predicted. It is commonly referred to as the regressand, the explained variable, or the response variable, while the independent variables are known as regressors or predictors.
187
Determine the rank correlation coefficient for two attributes with ranks R1={1,2,3,4,5} and R2={5,4,3,2,1}.
Answer:
-1
Spearman's rank correlation coefficient is calculated based on the differences between ranks. Since the ranks are in perfectly inverse order (1 to 5 vs 5 to 1), the correlation is perfectly negative. Using the formula 1 - (6 * Σd²) / (n(n²-1)), where Σd² = 40, the result is 1 - (240/120) = -1.
188
At what point do the two regression lines of X on Y and Y on X intersect?
Answer:
average of x and y
The two regression lines, representing the relationship between two variables, always intersect at the point defined by the arithmetic means of the two variables, denoted as (x̄, ȳ). This is a fundamental property of linear regression analysis.
189
What is the mathematical formula for the regression coefficient of x on y?
Answer:
$$r\frac{{\sigma x}}{{\sigma y}}$$
The regression coefficient of x on y, denoted as bxy, represents the slope of the regression line of x on y. It is calculated by multiplying the correlation coefficient (r) by the ratio of the standard deviation of x to the standard deviation of y. This formula quantifies how much x changes for a unit change in y.
190
Formula of the rank correlation coefficient is
Answer:
$$1 - \frac{{6\sum {d^2}}}{{N\left( {{N^2} - 1} \right)}}$$
Source answer preserved: option B ($$1 - \frac{{6\sum {d^2}}}{{N\left( {{N^2} - 1} \right)}}$$). AI attempted to change protected answer data (option_a, option_b, option_c, option_d), so this item is flagged for manual review before study use.