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
51
If the unexplained variation is 456,870 and the total variation is 955,000, what is the coefficient of determination?
Answer:
0.4783
The coefficient of determination (R-squared) is calculated as the ratio of explained variation to total variation. However, the provided formula in the source uses unexplained variation. Given the calculation 456,870 / 955,000 = 0.4783, this result represents the proportion of variation not explained by the model. We preserve the answer key as requested, noting the potential discrepancy in standard R-squared definitions.
52
Given two regression coefficients of -0.8 and -0.2, what is the value of the coefficient of correlation?
Answer:
-0.40
The coefficient of correlation (r) is the geometric mean of the two regression coefficients (bxy and byx). Mathematically, r = ±√(bxy * byx). Here, r = ±√(-0.8 * -0.2) = ±√0.16 = ±0.4. Since both regression coefficients are negative, the correlation coefficient must also be negative, resulting in -0.4.
53
In the Spearman's rank correlation formula, what does the variable 'D' represent?
Answer:
difference of two ranks
In the formula for Spearman's rank correlation coefficient, D represents the difference between the ranks assigned to the same individual or item in two different series (D = R1 - R2).
54
The coefficient of correlation is independent of which changes in the data?
Answer:
Both A and B
The coefficient of correlation (r) is a dimensionless measure. It remains unchanged regardless of shifts in the origin (adding or subtracting a constant) or changes in the scale (multiplying or dividing by a constant) of the variables involved.
55
What is the possible range of values for a correlation coefficient?
Answer:
Can be either positive or negative
The correlation coefficient, typically denoted by 'r', measures the strength and direction of a linear relationship between two variables. It ranges from -1 to +1. A positive value indicates a direct relationship, while a negative value indicates an inverse relationship. Therefore, it can be either positive or negative depending on the data.
56
Under what conditions does the correlation coefficient yield a positive sign?
Answer:
Both X and Y are increasing
A positive correlation coefficient indicates a direct relationship between two variables. This means that as the value of one variable increases, the value of the other variable also increases, or conversely, as one decreases, the other decreases. Therefore, both variables moving in the same direction results in a positive sign.
57
Which one of the following is a formula of Karl Pearson's coefficient correlation?
Answer:
$$r = \frac{{\sum XY}}{{\sqrt {{X^2} - \sum {Y^2}} }}$$
Source answer preserved: option C ($$r = \frac{{\sum XY}}{{\sqrt {{X^2} - \sum {Y^2}} }}$$). AI attempted to change protected answer data (option_a, option_b, option_c), so this item is flagged for manual review before study use.
58
At which specific point do the two regression lines (Y on X and X on Y) intersect?
Answer:
The point of the mean of X and Y
In regression analysis, the two regression lines represent the best-fit lines for predicting one variable based on the other. A fundamental property of these lines is that they always intersect at the point defined by the arithmetic means of the two variables, specifically (X̄, Ȳ). This intersection point serves as the center of gravity for the data distribution in a bivariate scatter plot.
59
In regression analysis, if the independent variable is measured in kilograms, what are the unit requirements for the dependent variable?
Answer:
can be any units
Regression analysis establishes a mathematical relationship between variables regardless of their units of measurement. The regression coefficient (slope) will simply adjust to account for the different units of the independent and dependent variables. Therefore, the dependent variable is not restricted to the units of the independent variable.
60
Match the following correlation types with their respective definitions: a. Positive correlation, b. Multiple correlation, c. Linear correlation, d. Partial correlation.
Answer:
a-4, b-1, c-2, d-3
Positive correlation (a-4) occurs when variables move in the same direction. Multiple correlation (b-1) involves studying the relationship between more than two variables. Linear correlation (c-2) implies a uniform ratio of change. Partial correlation (d-3) isolates the relationship between two variables by controlling for others.