Solved Correlation and Regression (Business

Correlation and Regression MCQs for Competitive Exams

Practice with answers, explanations, and exam-focused revision notes.

227 MCQs Page 23

Topic Notes: Correlation and Regression

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Correlation and Regression MCQs in Commerce are useful for candidates who need targeted practice for CSS, PMS, FPSC, PPSC, NTS, entry tests, and other competitive exams in Pakistan. This topic page is designed for quick revision, repeated practice, and exam-focused preparation.

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221

If an estimating equation shows that the dependent variable increases as the independent variable increases, what is the range of the correlation coefficient?

0 to 1

0 to (-) 1

0 to (-) 0

0 to (-) 0.05

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222

What happens to the two regression lines when there is a perfect positive or perfect negative correlation between variables?

Both A and B

coincide

None of these

overlap

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223

If two variables exhibit a very strong correlation, what must be true about the correlation coefficient?

none of these alternatives is correct

any value larger than 1

much smaller than 0, if the correlation is negative

much larger than 0, regardless of whether the correlation is negative or positive

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224

Calculate the Spearman's rank correlation coefficient for the following data sets: X = {5, 9, 6, 9, 3, 9, 4, 9, 2, 9} and Y = {7, 9, 6, 9, 3, 9, 4, 9, 3, 9}.

0.7

0.9

0.2

0.8

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225

In a linear regression model, if a specific value is assigned to the independent variable (x), what is the implication for the response variable?

the computed response to the independent value will always give a minimal residual

the computed value of y will always be the best estimate of the mean response

the exact value of the response variable can be computed

none of these alternatives is correct

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226

If $$x = X - \overline X $$ and $$y = Y - \overline Y $$ be n number of pair terms, then

$$r = \frac{{\sum xy}}{{\sqrt {\sum {x^2}\sum {y^2}} }}$$

$$r = \frac{{n\sum xy}}{{\sqrt {\sum {x^2}\sum {y^2}} }}$$

$$r = \frac{{\sum xy}}{{n\sqrt {\sum {x^2}\sum {y^2}} }}$$

$$r = \frac{{\sum xy}}{{n\sum {x^2}}}$$

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227

The regression coefficient is independent of a change in which of the following?

None of them

both origin and scale

scale but not of origin

origin but not of scale

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Correlation and Regression MCQs for Competitive Exams

Correlation and Regression MCQs for Competitive Exams

Topic Notes: Correlation and Regression

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