Chapter # 10

Regression and Correlation

1. If co-efficient of determination is positive then co-efficient of correlation could be:
a) Positive b) Negative c) Might be any d) None of above
2. Co-efficient of rank of correlation?
{ x = 1,2,3,4,8, y = 2,3,5,6,8}
a) 1 b) -1 c) 0.98 d) 0.91
3. Y = 1403.57-3.14x, what this regression line is showing?
a) By increasing 1 unit in x, y would increase by 3.14 unit
b) By decreasing 1 unit in x, y would increase by 3.14 unit
c) By increasing 1 unit in x, y would decrease by 3.14 unit
d) By decreasing 1 unit in x, y would crease by 3.14 unit

4. Find spearman’s rank correlation between two innings from the data given below.
Batsman A B C D E F G
Score innings 1 29 32 45 19 65 0 7
Score innings 2 30 36 62 25 20 6 3

a) 0.782 b) 0.583 c) 0.607 d) 0.889

5. Find regression equations and tell which is best from Aay, and Bee category to regression equation.

Aay Bee Cee Dee

Police 140 130 200 150
No of crimes 95 110 80 75
Which one is best from Cee and Dee according to regression equation?
a) Cee b) Dee c) Both d) None

6. From following information given, find correlation of regression.

X 3 5 8 11 9
Y 1 0 4 0 1
a) 0.019 b) 0.038 c) 0.058 d) None

7. If r = 0.4356 and b= 9.359,then find byx ?

a) 0.020 b) 0.0289 c) 0.034 d) 0.20
8. Ranks of students (1,1),(2,5),(3,3),(4,6),(5,4) and (6,5); find coefficient of rank correlation.
a) 0.793 b) 0.764 c) 0.867 d) 0.889
9. If ∑ x=2000 , ∑ y=1020, ∑ xy=1500, ∑x2 =500,and ∑ y2 =600 and n=100 then, find “r”.
a) 0.876 b) -0.876 c) 0.960 d) -0.960
10. 5x+4y-10=0 9x + 5y-3=0 Find correlation coefficient?
 a) 0.833 b) -0.833 c) 0.694 d) -0.694
11. ∑ 𝑥𝑥 = 289 ,∑ x = 76 ,∑ y = 86 ,n=20 ,𝑥 = 2 and 𝑥 = 8. Find r=?
2 2

a) 0.226 b) -0.226 c) -0.652 d) None

12. 5x+4y-10=0 x+5y-3=0 Find correlation coefficient?
a) b) c) d)
13. ∑x=1239 , ∑y=79, ∑xy=1613 , ∑ x2 =17233, ∑ y2 =293 n=100 find regression lines ‘y on x’ and ‘x
on y’ and their point of intersection?
a) 12.39 b) 7.9 c) (12.39,7.9) d) (7.9,12.39)
14. In an effort to reduce crimes, the superintendent Police of Far town has requested the Inspector
General to increase police strength in his town. He has gathered information from other town. He
has gathered information from other towns of the city and submitted the following details to
support his request:
Town Bee Cee Dee Geen Jay Kay Pee Tee
Police strength 150 170 250 270 170 120 110 220
No.of crimes per month 170 110 50 40 90 210 188 60
i. Determine the regression equation and interpret you’re your result.(Assuming that ratio of
police strength to total number of people is same in all towns)
ii. Determine the coefficient of correlation and determination and interpret your results.
iii. Using the above regression equation, determine whether police of Jay town is more efficient
than police of Pee town

15. The following data shows the height and weight of eight men working in an organization who were
selected at random:
Height 150 155 161 166 170 174 182 190
Weight 60 63 67 70 72 74 76 78
find rank co-relation
a) b) c) d)
16. Value of perfect positive co-relation lies between?
a) 0.9 to 1 b) Exactly 1 c) 0.999 to 1 d) Below 1
17. Find co relation and co-efficient of determination ?
Traffic density(x) 30 35 40 45 50 60 70 80 90
Accident rate (y) 2 4 5 5 8 15 24 30 32

a) b) c) d)
18. Find rank co relation
X 2500 2625 9717 5781 6328 1421
Y 45 50 85 51 42 60
a) b) c) d)
19. Regression lines passes through the(-------)?
a) Mean of data b) Mode of data c) Median of data d) None
20. Range of coefficient of correlation is?
a) 0 t0 1 b) -1 to 1 c) Above 1 d) -1 to 0
21. r2 =0.83, b=3.24 d=?
 a) 0.506 b) 0.2811 c) 0.2561 d) 0.761
22. If y on x is y=16-1.5x, then every increase in x, y would be
a) Increase b) Decrease c) Remain same d) None
23. What will be the correlation coefficient if ∑x = 78, ∑y = 146, ∑ x =2310, ∑xy = 2690 and n = 4?
2

a) b) c) d)
24. Co efficient of determination
a) Range from -1 to +1 b) Square of “r” c) Range 0 to 1 d) b& c
25. 55% variation by x 𝑏𝑥𝑦 and 𝑏𝑦𝑥 both –ve Find r
a) -0.55 b) 0.714 c) -0.741 d) -0.305
26. Which of the following is a possible value for correlation coefficient?
a) -1.5 b) 0 c) +1.5 d) None of the above

27. Two persons A and B tasted 4 different brands of coffee and ranked then in order of preference as
follows:
Brand Ranks given by A-B (𝐴 − 𝐵)2
A B
B-1 4 3 1 1
B-2 2 1 1 1
B-3 1 2 -1 1
B-4 3 4 -1 1
10 10 0 4
Spearman’s Coefficient of Rank Correlation in the above case is:
a) 0.40 b) 0.60 c) 0.93 d) -0.40
28. Which of the following statements about Spearman’s Coefficient of Rank Correlation is NOT correct:
a) It can co-relate two or more set of rankings b) It applies only when no ties exist
c) Both (a) and (b) d) None of the above
29. A regression equation Y = a + bX is used to forecast the value of Y for a given value of X. Which of the
following increase the reliability of the forecast?
a) A correlation coefficient numerically close to 1
b) Use of a large sample to calculate the regression equation
c) Forecasting for value of X outside the range of those used in the sample
d) Both (a) and (b) will increase the reliability of the forecast

30. A national consumer magazine reported the following correlations:

 Correlation between car weight and car reliability is -0.4.
 Correlation between car weight and annual maintenance cost is 0.7.
Which of the following statement are true?

a) Heavier cars to be less reliable.

b) Heavier cars tent to cost more to maintain.
c) Car weight is related more strongly to reliability than to maintenance cost.
d) Both (a) and (b) are true.
31. What will be the correlation coefficient if ∑x = 12, ∑y = 42, ∑𝑋 2 =46, ∑𝑌 2 = 542, ∑xy = 157 and
n = 4?
 a) -0.98 b) 0.25 c) 0.98 d) 0.008

32. A company is building a model in order to forecast total costs based in the level of output. The
following data is available for last eight months.
Months Output Cost (Rs 000)
Jan 16 17
Feb 20 24
Mar 23 26
Apr 25 30
May 25 28
Jun 19 23
Jul 16 20
Aug 12 16
156 184
Using the above data, calculate the value of á’ for the equation Y = a + bX
a) a = 2.6136 b) a = 1.0455 c) a = -2.6455 d) a = -1.0455
33. Correlation between weight and salary?
a) b) c) d)
34. Value for 𝑥 = +0.90 & + 1 indicates.
a) Perfect positive b) High c) Moderate d) Both a and b
correlation correlation correlation
35. n=20, ∑ 𝑥 = 650, ∑ 𝑥 = 450, ∑ 𝑥𝑥 = 900, ∑𝑋 2 = 1200, ∑ 𝑌 2 = 1150.
Wrong values x= 2,7 y=1,9
True values x= 5,3 y=2,7
Find correct r?
a) b) c) d)
36. n=9, ∑(𝑥 − 𝑥𝑥) = −𝑥𝑥, ∑(𝑥 − 𝑥𝑥) ^2 = 𝑥𝑥𝑥, ∑(𝑥 − 𝑥𝑥𝑥) = 𝑥𝑥, ∑(𝑥 − 𝑥𝑥𝑥) ^2 = 𝑥𝑥𝑥𝑥, ∑(𝑥 − 𝑥𝑥)
∑(𝑥 − 𝑥𝑥𝑥) = 𝑥𝑥𝑥
a) b) c) d)
37. n= 20, ∑ 𝑥 = 650, ∑ 𝑥 = 450 ∑ 𝑥𝑥 = 900, ∑ 𝑋 2 = 1200, ∑ 𝑌 2 = 1150,
Correct Value Wrong Value
X 2, 7 5, 3
Y 5, 3 2, 7
Find coefficient of correlation
a) b) c) d)
38. Correlation between weight and income?
a) +ve b) -ve c) null d) none
39. In regression line Y= a+bx
a) Fixed cost b) Variable cost per unit c) Total cost d) All
40. If the value of 𝑟 2 is 0.25, it means that :
a) 75% of the variation in the value of y is explained by variation in the value of x
b) 50% of the variation in the value of y is explained by variation in the value of x
c) 25% of the variation in the value of y is explained by variation in the value of x
 d) 0.25% of the variation in the value of y is explained by variation in the value of x
41. If ∑x=173, ∑y=613 ∑xy=11,965 ∑𝑥 2 = 4,119 and n=10, then the point where the regression line for
x on y will intersect the regression line for y on x will be:
a) (173, 613) b) (8.65, 30.65)
c) (17.3, 61.3) d) Cannot be determine
42. The Citizen Liasion Committee of Utopia city has gathered following information from various
town of the city:
Town Bee Cee Dee Geen Jay Kay Pee Tee
Police strength 120 150 230 235 156 150 130 160
No.of crimes per month 95 110 90 55 90 180 130 110
The equation for regression line of y on x (line of best fit ) for the above data is : Y=185.031-0.466x
Using the above regression equation, which of the following statements is correct?
a) Police of cee town is more efficient than police of Bee town
b) Police of Dee town is more efficient than police of Gee town
c) Police of kay town is more efficient than police of pee town
d) Police of jay town is more efficient than police of Tee tow n
43. If ∑x=173 , ∑y=613, ∑xy=11,965, ∑𝑥 2 = 4,119 and n=10 then the Equation of regression line of y on
x (line of best fit )would be:
a) Y=40.402+20.989x b) Y=-61.30+20.898x
c) Y=40.402+1.208x d) Could not be calculated as value of ∑𝑥 2 𝑥𝑥 𝑥𝑥𝑥
𝑥𝑥𝑥𝑥𝑥
44. If the covariance (x,y)=62, standard deviation (x)=16 and standard deviation (y)=7, ‘r’ will be equal
to:
a) 0.6465 b) 0.5536 c) 0.6235 d) 0.5235
45. Which of the following statement is correct ?
a) The coefficient of determination is the square root of the correlation coefficient
b) The coefficient of determination is the square of the correlation coefficient
c) The coefficient of correlation is the square of the coefficient determination
d) The coefficient of correlation explains the variations in the value of y by variation in the
value of x.
46. Which of the following statements is correct as regard scatter diagram?
a) It may indicate a relationship where there is no none
b) It can show relationship between more then two variables
c) It leads to correct conclusions even if there are only few data points
d) It is least important to establish which variable is independent before pointing the
scatter diagram
47. If the equation of regression line of y on x [line of best fit ] is y=16-1.5x, then for every unit increase
in x,y would:
a) Decrease by 16 units b) Decrease by 14.5 units
c) Decrease by 1.5 units d) Increase by 14.5 units
48. Value of r=0, indicates:
a) Perfect positive correlation b) Perfect negative correlation
c) No correlation d) None of above
49. If 25% of variations in the values of y are explained by variations in the value of x then the
coefficients of correlation
 a) 0.50 or -0.50 b) 0.25 c) 0.75 d) Either 0.25 or -0.25
50. Which of the following statements is correct as regards scatter diagram?
a) It is least important to establish which variable is independent before plotting
b) If leads to correct conclusion even if there are only few data points
c) It can show relationship between more than two variables
d) It may indicate a relationship were there is none
51. A medical research company has developed the following equation for regression line y on x( line
best fit) for a particular age group y=6.63+0.38x where x represents height in centimeters and y
represents weight in kilogram . Using above equation , we can say that :
1. For each centimeters increase in height , weight will decrease by 0.38 kilogram
2. For each centimeters increase in height ,weight will increase by 0.38 kilogram
3. For each centimeters increase in height ,weight will increase by 6.55 kilogram
4. For each centimeters increase in height , weight will decrease by 6.55 kilogram
52. Which of the statement is correct ?
a) If there is a strong relationship between two variable ,the points on the scatter diagram
would be concentrated around a curve
b) Linear regression analysis is used to calculate values of ‘a’ and ‘b’ in the linear cost
equation
c) The standard regression equation is : y=a-bx
d) Both a and b
53. Equation of a line of best fit for the above data will be :
Heights (inch) 72 66 71 68 75
Weight (cm) 92 75 83 75 92

a) Y =189- b) Y= 1.89+48.06x c) Y =-48.06+1.89x d) Y =48.06-

48.06x 1.89x

54. If the value of co-efficient of determination i-e 0.64 It means that :

a) 20% of variation in the value of y are explained by variation in the value of x
b) 36% of variation in the value of y are explained by variation in the value of x
c) 64% of variation in the value of y are explained by variation in the value of x

55. The number of selection committee rank eight players for selection as follows :
Players A B C D E F G H
Ranks 1 1 2 3 4 5 6 7 8
Ranks 2 2 1 5 7 3 6 4 8
The coefficient of rank correlation is :
a) 0.57 b) 0.67 c) 0.47 d) 0.37
56. ∑ 𝑥 = 125 , ∑ 𝑋 2 = 650 , ∑ 𝑥 = 100, ∑ 𝑌 2 = 460, ∑ 𝑥𝑥 = 508, 𝑥 = 25
Wrong values of X 6, 8 and correct values 8, 10
And Corresponding values of Y=4, 6 Find r?
a) b) c) d)
57. Pearson Correlation Coefficient between 2 variables x & y is +0.22. What proportion of variation in
x is unexplained by variation in y?
a) 4.8% b) 46.9% c) 22% d) None
58.

Person Employed Clothe Manufacture (yard 000)

137 23
209 47
113 22
189 40
176 39
200 51
219 49
Find the coefficient correlation between person employed and cloth manufactured in a textile mill
from the data
a) 0.9428 b) 0.9637 c) 0.9251 d) None of these
59. Perfect correlation is denoted by the value ;
a) 1 b) 0 c) Between 0.90 and 1.0 d) 1 or -1

60. A survey reported the following correlations:

 The correlation between car weight and car reliability is 0.30
 The correlation between car weight and annual maintenance cost is 0.20

Consider the above, which of the following statements are true ?

(I) Heavier cars are tends to be less reliable
(II) Heavier cars are tends to cost more to maintain .
(III) Car weight is related more strongly to reliability than to maintenance cost.
a) I only b) I only c) I and II d) I , II and III
61. The average runs score by seven leading test cricket during last calendar year are given below:

Average runs score 1st inning (x) 46 73 68 79 49 43 81

Average runs score 2 inning (y) 31
nd 55 65 62 85 39 51
The spearman's rank correlation coefficient for the runs scored in first and second innings is:

a) 0.7143 b) 0.1190 c) 0.2875 d) 0.8810

62. If the equation for regression line of y on x (line of best fit) is y= 16-1.5x, then for every unit
decrease in x,y would:
a) Decrease by 16 units b) Decrease by 14.5 units
c) Decrease by 1.5 units d) Increase by 14.5 units
63. If 𝑥𝑥𝑥 = −0.78 𝑥𝑥𝑥 𝑥𝑥𝑥 = −0.45,𝑥ℎ 𝑥𝑥 𝑥 𝑥𝑥 𝑥𝑥𝑥𝑥𝑥 𝑥𝑥 ∶
a) 0.351 b) -0.351 c) 0.592 d) None of these
64. Which of the following statements regarding regression is correct?
a) If there is a weak relationship between two variables. The point on the scatter diagram
would be concentrated around a curve
b) In a linear regression, both variables are dependent to each other
c) The standard regression equation is: y= a-bx
d) In the linear regression, one of the variables is consider to be an explanatory variable,
and the other is considered to be a dependent variable
65. Increasing trend on scatter diagram
a) option b) option c) option d) none of these
negative positive random
66. Which of the following statement is is correct
a) If there is a strong relationship between two variables, the point on scatter diagram will
be concentrated around a curve
b) linear regression analysis is used to calculate values of A and B in the linear cost
equation
c) the standard regression equation is
d) both a and b
67. If all point lies on the greater line least care regression line the error will be
a) 0 b) 1 c) Maximum d) Minimum
68. Characteristic of regression line
a) Predict/estimate dependent variable when independent variable is given
b) Define relation between dependent and independent variable
c) Both A and B
d) None of these
69. Which of the following statement is correct
a) The value of coefficient of determinant is in the range of –1 to + 1
b) The value of coefficient of determinant shows how much variation in the value of Y is
explained by variation in the value of x
c) If the coefficient of correlation is R = 0 it's mean there is a perfect correlation between Y and
x
d) Both a and b
70. There is a perfect positive correlation when
a) All the data point lies on scatter diagram in a discrete form
b) All the data point lies in an exact straight line and in a linear relationship exists between the
two
c) Variables all the data point lies in an exact straight line but relationship between may be
maybe or not linear
d) None of the above
71. Which of the following statement is correct
a) If there is a weak relationship between two variables, the points on the scatter diagram
would be concentrated around a curve
b) Linear regression analysis is used to calculate A and B in the linear cost equation
c) The standard regression equation is y= a – bx
d) Both a and b
72. The unknown value of dependent variable can be estimated on the basis of given value of
independent variable by using
a) Scatter diagram b) Both A and B
c) Least square regression line d) None of the above
73. When all the data point lies in an exact straight line and linear relationship exists between the two
variables then there is a negative correlation positive correlation perfect negative correlation
perfect post correlation
a) negative b) positive c) perfect negative d) perfect positive
correlation correlation correlation correlation
74. Which of the following statement as regard to the value of correlation Coefficient is/are correct:
1) The coefficient of determinant is the square of the correlation coefficient
2) the value of the coefficient of determinant must always be in the range of 0 to 1
a) Both statements are correct b) Only statement 1 is correct
c) Both statement are not correct d) Only statement 2 is correct
75. If two variables have perfect positive correlation then
a) byx = bxy b) byx > bxy c) . byx < bxy d) byx= 1/bxy
76. Which of the following is incorrect about coefficient of determination
a) Range from 0 to +1 b) Square of r
c) Range from 0 to –1 d) Explain the variation in dependent variables due to
independent
77. If the coefficient of determination is equal to 1 then correlation coefficient is
a) must be equal to 1 b) any value between -1 and + 1
c) either - 1 or + 1 d) must be –1
78. If the coefficient of determination is a positive value then the coefficient of correlation
a) must be positive b) must be negative
c) must be zero d) can be positive as well as negative
79. Regression line is Y = 32 + 0.5x one unit increase in X would affect what and how much
a) 1 unit increase in X causes 0. 5 unit increase Y
b) 1 unit increase in Y causes 0.5unit increase
c) 1 unit increase in X causes 1 unit increase in y
d) 1 unit increase in y causes 1 unit decrease in y
80. The correlation between height and weight for adult is + 0.90. it depicts that height on account of
variation in weight is
a) 90 % b) 45% c) 10% d) 81%
81. Which of the following is true about regression line
1) It is used to obtain line of best fit between two variables
2) We can calculate fixed cost from it but not variable cost
a) Both statements are correct b) Only statement 1 is correct
c) Both statement are not correct d) Only statement 2 is correct
82. Which of the following statement is are correct where regression is used
1) it is very important in accounting and other business operations
2) it is widely used in economics and business
a) Both statements are correct b) Only statement 1 is correct
c) Both statement are not correct d) Only statement 2 is correct
83. Consider following data
Town Bee Cee Dee Geen Jay Kay Pee Tee
Police strength 140 130 220 150 140 150 180 160
No.of crimes per 95 110 80 75 90 120 100 110
month
The equation of regression line of y on x (line of best fit) for the above is: Y= 129.25-0.2x.
Using the above regression equation which of the following statement is correct
a) Police of B Town is more efficient than police of C town
b) Police of D town is more efficient than police of G Town
c) Police of K town is more efficient than police of P town
 d) Both a and b
84. Value of r = 0 indicates
a) perfect positive correlation b) no correlation
c) perfect negative correlation d) none of the above
85. If 25% of variation in the value of Y are explained by variation in the value of x then coefficient of
correlation is
a) 0.25 b) 0.75 c) 0.50 or - 0.50 d) either 0.25 or-0.25
86. If the value of r2 is 0.25 it means that:
a) 75% of the variation in the value of Y is explained by the variation in the value of x
b) 50% of the variation in the value of Y is explained by variation in the value of x
c) 25% of the variation in the value of Y is explained by the variation in the value of x
d) 0.25% of the variation in the value of Y is explained by the variation in the value of x
87. If covariance (x,y) = 62 ,standard deviation( x ) = 16 and standard deviation (y) = 7 “r “ will be
equal to
a) 0.6435 b) 0.5536 c) 0.6235 d) 0.5235
88. In regression the sum of the residuals is always
a) Zero b) Greater than zero c) Less than zero d) All of these