we hi i Napcncen M0 Nattables Here we can ea the direction and strength of the sata ofthe Other Varishle- Tor matinee mango BeUICthe value Of one vara from 1 pected amount OF supply for nd supply are correlated. We can find 4 of supply 4 gwen price or the Price or the required price level for attaining the oat reson helps us t0 estimate one variable or the Gemenct acependent Variable In other wan aol othe dependent variable from the other variable Can estimate the value of one varrabl o or vatiable iy ein : of one variable, provided {rn of the other variable 1s given. The statistical method whch helps us to estimate the vaca? value of one variable from the known, value of the related variable 1s called Revresst sefxtenary meaning of the word repression is return’ or going back * In 1871, Sit France Goon: ssaoduced the word ‘regression’, white studying the relationship between the heights of fathers vot He studied about the heizhts of 100 fathers and sons and gave his opranen that all ren were having tall sans and short fathers were having short sons. He found out that she rege bight of the sons Of tall fathers way less than the average height of the tall fathers. and renenge height Of the sons Of short fathers, was more than the average height of the shomt a The tendency 10 regression oF going back was called by Galton as the “Line of Regression’ ‘ein describing the average relationship between two vanables 1s known as the line of regression ‘on te modem writers use the term ‘estimating line’ instead of “regression line * inition sording 10 Blair, “Regression as the measure of the average relationship between two or more ‘wale m terms of the original units of the data.” According to Taro Yamane, “One of the most frequently used techniques in economics and pssusearch.to find a relation between two or more variable that are related casually, i regression 3 _ Mcording to Wallis and Robert, “It is often more important to find out what the relation }25 6, in order to estimate or predict one variable (the dependent variable), and statistical "8 appropriate in such a case is called Regression Analysis.” | “ording to Ya-L.un-Chou, Regression analysis attempts to establish the nature of relationship Variables, that is, to study the functional relationship between the variables X and tb), provides a mechanism for prediction or forecasting.” 40 Peay UE M0 types of variables in regression analysis — (a) Independent pacer ae (tiable. The variable whose value is influenced or is to be predicted is calle pe nde Ne. Teas the variable which influences the value or is used for prediction 1s Variable. hy NE 1 Ya-Lun-Chow, “Regression analysis is @ statistical device. NS “alysis, we can estimate or predict the unknown values of one variable ‘ane Statistic: 'S Theo, TY ang B, vst another Vatiable In the teytession analysis, the independent variaby, oF “egy to" oF “eyplanator and the dependent variable is key 880 o yanable ) ‘own ag, ‘reget _Wsos of Rogrossion Analysis “ee rk ysis ts tsed in tatisties in all those fields where (0 oF more ave having: the tendency to po back to the average, Is used more than the sg etve Ww many scientific statics Hay wadely used im soctal sciences like econo tion an physical sciences Has used to estimate the relation between two econoen® Many income and expenditure. we know the income, we can ae Thos it ts highly valuable tool in economies and busi on cause and eftect relationship. IL is very useful for prediction purposes. ¥hay In buses also, itty very helptul to study business predictions. Cost of product by the sale of production, Economists have discovered many predictions and ty Oris the basis of the regression nalysis predicts the value of dependent variables from the values of in ey tia, w Regression Variables 1 The regression analysis is highly useful and the regression tine equation helps tp When the values of independent variables are tele the value of dependent v equation 4 We can calculate coefficient of correlation (7) and coefficient of determination (7) ih help of regression coefficient S Regression analysis in statistical estimation of demand curves, supply curves, priya, function, cost function, consumption function ete., can be predicted, 7 Significance of Rogression Study The coeflicient of correlation between the two variables gives us an abstract form a pure nuniy of the amount of relationship between the two variables. It is an abstract number which measse the degree of the relationship between the two variables, While dealing with economies x unmercnal data, we are requited to make prediction or estimation, For instance, with arise inpra the demand for the commodity goes down; with better monsoon, output of agricultural proées increases ete, The first objective of regression analysis is to provide estimates of the vahest the dependent variable fiom values of independent variable, Prediction of estimation is on sf major problems in almost all spheres of human activity. The prediction or estimation of future aciie are important to businessmen, Thus the statistical device, with the help of which, we estat predict the unknown valucs of one variable from the known values of another variable, isk" as regression, Regression analysis is one of the scientific method for making such preset” According to Blair, “Regression analysis is a mathematical measure of the average Feet between two or more variables in terms of the original units of the data”, This is done * help of the regression line, The regression line describes the average relationship existing ; Vand Y vanables, 4¢., it is a line which displays mean values of Y for given values ° The regression analysis confined to the study of only two variables at a time 5 ie simple regression. The regression analysis for studying more than two variables at #" as multiple regression Correlation and Regression ples vl The correlation coefficient is a measure of degree of covariability between ent regression establishes a functional relationship between dependent and indepen’ gt, that the former can be predicted for a given value of the later, Correlation should bas mote for sf the relavonship is not sufliciently strong there would appear to be no soundSeason is the Felationship , OTe variable. which Vary in eMeen ww . S™Pathy° PPosite the other i thE same oF Wn qv le gl Variable, _ ands out the degree of relations, 3 oe yanables and not the cause cnt metveen wot e year Sct OF the used for testing and ve Tifying th Riveen to variables and gives Thane fe8ton ‘d infor. noon sre coeiticient of Correlation is a relay, The j e ve The range of Felationship lies berwec ns * nt), mer vy be nonsense cor i gonet ma} relation between two variables. anes mited application, because it is confined :o linear relationship between the variables. ony iris not very useful for further mathematical teat ment o if ine coefficient of correlation is positive, then x9 variables are positively correlated and ¢ versa vie mmaterial whether X depends upon Y or Y ds upon X. fi Variable, In regression th sion, lee is no such ‘Tonsense regres. Ithas wider application, ; a it studies tin Non-lineer telationship ries between the variables tis widely used for further mathematica rete ment, The regression coefficient explains that the decrease in one variable is associated with the increase in the other variable. There is a functional relationship between the two variables so that we may identify between the independent and dependent variables. Eee ethod of Studying Regression ee are two methods: 1.Graphic method 2. Algebraic method \ 1. Graphic Method: The points are P! concerned variables. In this cee ae dependent variable on the vertica! Tezression line may be cree should be drawn carefully as the in such a manner that the sum h pal jotted on a grap! the independent v senting pars of values ofthe taken on horizontal axis 29 A yrter diagram of ic scale rule. I sper repres ariable isTT Matalin The, ideal one th “wh 63E Ne acy 468 hows the Wg we lusteation she . — " 1 The following ———} , ' \ { ox 1 ° | on 1 ot | ox , ot oy ; os 60 2 ot ' & oy 1 oo - s 8 Ss ° ox me ow os vo Aegrewvn a 5 Late of Pn A> Reeiession / Hine ot Von Bp ee $2 1 oF 6S 6 67 ok ov 9) Heaghtof Fathers (Inches) 2. Algebraic Method: Regression Line: Inthe graphical {Stkon, a regression ling is straight line fed w= by the method of least squares. I indicates the best probable mean value of ot iors ican ing tthe mean value ofthe other Sine a regression fine isthe lin of it cannot be used Conversely ; therefore, there are always two regression lines Gar ssa, Vand ¥. Thus, one regression line shows" sression of ¥ upon ¥. "lationship, then we ean draw regression line. Io me and (thes "there are two Tesression lines, (a) as the regression bee line of regression gives the beste, Mos probable values yt ox lariable. The regression lin os Sn value of Y. In the same manner,? ression lines i val ye 2 wo Fee in the case SUES of £ on X gives the most probable it ° oS pere iS perfectly positive correlati fF ty , a ' ” essiom nes cleat With each ei !) oF perfect) X. Thus there ere nearer 10 other, then there 1.27 there wilt, eeatve corel pe 2 Payay from each other, then there i 12 hither degre Ube only one line, tthe nog he fe endent. Both will cut each a is lesser deg legree of correlation: ifihe Tegression Fon lines cut each other atthe pega eM angle, ion. r= he to tines 2 int to the X axis We will pet the nyet 8Ye™8e Of Xand oes eae ave and ¥, pe point to the Y axis we will aarti Tage value of tang ALY® draw a perpendicular F ) Average value of y."° "8 @ perpendicular AC=y BC=z ) Le. WI Fechet Me plot tine CA from pt. Con Wi’ WE Bet the average value ofy ‘ey Tee the Plt line perpendicular to y-axis Bet the average value ofx ne. CB=3 0 al ¥ Degree ofr Less De , y erce of _ y a) @.3) @y ; Bb x x He degree of 7, because, Low degree of r, because, because, the two los ct ess angle between high angle between the two lines of regression are temo lines of regression. lines of regression. perpendicular to each other. method. It is an algebraic expression Repression Equations: Regression equation is an algebraic , ‘ equation, regression coefficient, tt rearession line, It ean be classified into regression peas observation and group distribution. there are two regression lines, there are two regression lere are two re; regressi i ‘on Yand the ney ressil ions. They are .ssion equation of X i eer gression equations. They gre al fee ‘ "eession i h equation of Y on X. The former states the ue of X fora ie ‘hge in Y-and the latter states the change in the value of Y for a given chang Regression Equation of X on y Regression Equation 2 ——— ——Xy rat Y equations. For the two variables470 Statistics 7), “Vang feng Here ‘a’ and ‘b’ the two unknown constants or the parameters of the fine det he digg ge, ee t fitted line. It j nstant ‘a’ shows the level of the isd Sa See the point where the regression line touches the Yay ies the slope of the line. X, is the value of X computed from the relate tongs By the least square method, we can find out the value of ‘a’ and ‘b’ and dete, mie line, which is known as the line of best fit. The formulae are: Mine y, EX = Na+brY EYY =aZY + bEY? a 2 Nis the number of observed pairs of value. LX , ZY , ZXY , EY’ ae the to Is computed from the value of two variables X and ¥. Thus we can fit a least _ Regression Equation of Y on X y% satbe To find out the value of a and 6 we can use the following formulae: EY = Na+ bUx EXY = aEX + bEx? We can call these equations as normal equations. Illustration 13.1 ; Determine the equation of a straight line which best fits the x: 10 12 13 16 17 20 Y: 10 22 24 27 29 33 (M.co, Solution: Straight line Y=at br The two normal equations are: EY =b2Y+Na IXY = bEX? 4 any Calculation of Regression Equation x x Y 10 100 10 100 12 144 22 264 13 169 24 312 16 256 27 432 17 289 29 493 20 400 33 660 25 625 37 925 =X =113 =X? = 1983 EY =182 LEXY = 3186 Substituting the values, bEX + Na 82,EX =113,N =7 1135 + Ja = 182an, Ip, EXY = ey woe? the i Ber Lowe tate © cont 198364 1130 31m ee = 198g en for g Stan ag (ey 13 Lok ai hentia? | yi 127696 +7914 =20: me " @by7 ae =) me (2) yin wt 138815 +7914 = 2239 o ‘ing (4) from (3) a bey 2 “1.1126 =-1,736 He Ling 11126 = 1736 eo epee) ia 756 en b= 1.56 ie 1136 + 7a = 182 113% 1.56 + 7a =182 176.28 + 7a = 182 “ 82-176.28 a Ja=5.72 a 5.2 PP a= Kolkata 7 =0.82 The equation of straight line is y=a+bXx a= 0.82, b= 1.56 4 ¥=0.82+ 1.56¥ ‘he equation of the required straight line is ¥=0.82+ 1.56" gression equation of y on x. wwiation Taken from Arithmetic Mean of Xon ¥ , which is a tedious one. method is easier and simpler 40 calculate than the pervious method, eon fod out the deviations of X and Y series from their respective means. Regression equation of X on vy This is called re oy _F _ perc" — x-X "oy X= Mean of X series 7 = Mean of Y series y or By fficient of 0” pee ay: The regression coe! a—_—_—_— os i Statistics, Theo, 472 Ee ey or y ir gives the values by which one variable changes i-e., for a unit i inte 8 bye = & She, ee @. The regression coefficient of ¥ on X = byx. ead " pa ° By yx fe BD a vey Be ox VED “Vee = 8 Therefore Np = by x yx r= bxy x byx Illustration 13.2: Calculate the two regression equations of X on Y and Yon.xf aiven below, taking deviations from actual means of X and X rom, - 10 12 13 12 16 Price (RS.) ; Amount demanded 40 38 43 45 37 & Estimate the likely demand when the price is Rs. 20., 4A. Booms Solution: Calculation of Regression Equation x (Y- 41) =y ef a \ 3 e 3 a! ° 16 “4 ils -2 4 4 Ey? = 50 | By= 0.12 oy “sy? 50 X13 =-0.12(-41) X-13 =-0.12y + 4,92 X=-0.12y + 17.92 Regression equation of ¥ on X y-¥ Dy x r2x-%4m3 ox * y 2 7 94 7025 Y—41 =~ 0.25 (X13) ¥-4l =~ 0.25X 43.25 Y¥=~0.25X4 44.25 0.25 (20) +.44.25 5 +44.25 =39.25 ane price is RS: 20, the likely demand is 39.25. whet i; equation ina bivariate grouped frequency distribution (from a correlation table). Lat wre isthe same aS above. The modified formulae are: * _ Bide x Bfly 8 on eT ix ge ~ vy a) Pa y ix x width of the class interval of x variable of the class interval of y variable. py wath Ilvstration 13.3: The following are the marks obtained by 132 students in test X and test Y ei 30- 40 50- 60- 70- Total rT) 2 3 3 10 _ | 0 8 12 27 a) 5 22 4 1 42 3-60 2 16 2 29 70 1 8 6 1 16 0-00 2 4 2 8 lial 3 21 63 39 6 132, Calculate: (0)he correlation coefficient. Othe regression equations. (B.Com. MK) Solution: (a) Coefici i B ‘oefficient of Correlation: Sfx) x (Efe) Bfedy — LED ELDY re jee L open } x {ava have es we syed = 7 }x {232 «132 on | From the tab 7 Thao x 132 = (24y 9372 — 912 = [12672 - 576) x (30624 ~ 1444) 8460, . ne x 29180 clog of 8460 ~ (4.0823 + 4.4651} 23.9274 - assert 23,9274 -4.2737 = 1.6537 = 0.4505 1 = 0.45 (b) Regression equations Regression equation of Y on X y-7 =r 2x-X) ; syd! Y =A+ Be xc A =45,3fd’ = 38,N =132,C =10 38 Y =45+—— 12! 380 =45+——= p25 7288478 Ox 2 [ie san, fee. (sy ae Bad's? = 96, Bil'x = 24, N= 132, C= 10 ox 96 132 > (3) x10 Oa woe? {00R x10, = 8.33 ary oy = par (uay ee N Fay? = 239 2d’y = 38, N= 192, €=10 2-3) u 32) 10 = Vi758— 0083 758 0.083 x10 = VV675 x10 = 1.295 « 10 = 12.95 jegression equation of Y on X ¥ =47.88, X =56.28.6x=8.33 Oy = 12.95, r=0.45 ¥-47.88 = = 0.45258 (X = 56.82) ¥-47.88 =0.7 « a ’ ¥-47.88 = 0.7 X-39.774 Y=0.7X + 47.88 - 39.774 Y=0.7X+8.11 Regession equation of X on Y 8.33 = 0.45 ———(¥ - 47.88) X-56.82 = 0.457550 X — 56.82 =0.29Y — 13.8852 29 + 56.82-13.8852 29 + 42.93& / nel oc r a - & 96 = & [ ons ve 6f 0 Wz a & ‘S b= g we} UI of 0 1e- 9 aw = + = k= zec =| se a ore | PR] PR] cer} 9 6£ £9 Iz € f ra | au ve zt £ OS-0L al 1 — — vl vw] ze] Oo 1 t z $9 ]0L-09 4 7 i "i j 6 | oz] 62 cg 6 z 1 ss [09-05 | #1 4 a 6 | 0 Oo} @& 1 1 s 0 st /0S-0F ll | —_d | y wy) ul a 9 8 I - se _ jf 91 | al a zm) oO s z a] “vu ws \ | z 1 0 1 ¢ \-” y { emqne * ———— St 11 sequns r i re sete une, 09 OF OF t Nn Y e *\ from the jaken assumed mean an io? perween the above said methou and Aes gears WE take deviations from the assumed nat MStEAd Of tak ic 6 7 red m ‘aking deviations from tte gn be used. The regression equation of yoy Y iy the actual mean is in faction X-¥ =r By _z. oy (YF) o> = ——_v__ N d= X— A; dys yg. eqression equations of ¥ on X is ref eS . y-¥ =r Px tration 13.4: Price indices of cotton and wool are given below for the 12 months of a ain the equations of lines of regression between the indices. a Zpemon) 78 77 8 8 8 HOT 16 OT 8S ween 6 2 es es ee oe oy inde (B.Com. Madras) dution: Calculation of Regression Equation Peoms|| w-anogll oF dy ‘of wool a ey ee 2 = Z 85 a 89 e 90 0 88) -28 92 40 83 “1 89 130 98 9 9 | ___ | Eaedy = 1061Staiatics Thor, ann ~ nm? , 478 sation of 07 wae?) regression Fava! wed POO tly “ yal ~ N by = » Oar)’ Eh? oy 4x5 ne ( eis pay Seale 20) - (sy) 365K 12=25~ 305 — 12 yadd +20 _ * ano - 25 0.795 79S (Y N- 83.67 = 0. 83.67 = 0,795¥- 70.29 : : N 0.795 - 70.29 + 83.67 355 88.42) N= 0.795Y + 13.38 Regression Equation of ¥ on X: 5 287 x12- 488x12-6 | 3444+ 20 _ 3464 © 5856-16 ~ S840 =089 Y- 88.42 = 0.59(¥ 83.67) Y- 88.42 = 0.$9V—49.37 Y=0.59X-49.37+ 88.42 Y= 0.59x + 39.05 ” Coefficient, we must note the following po € the same sign, coefficient of co tl When we calculate the regressio 1. bxy and bx will hav 2 As the value of th oe? also lie between relation lies between +1 beth the regression encesion coefficient have the same si 479 the reeree versa. ame sign. If the f rd vic former tio ive a! # git of a ite know any three val 1s! apie ‘alues, we Ge . et of (re oy Can find out the f jon 0 ing data calculate the solowins jsirom! A, jent a" So fic! via sion fo py = 0.85 bys = 0.89% (M.Com Rajasthan) ot correlation: = bay x by) pet of = J085x0.89 = V0.7565 = 0.87 iation of ¥: sid DOW @ rx— =0.85 oy 0g7x2- 0.85 oy 0.85 oy = 0.87 x 3 I . " aon 13.6: Given the following data, calculate the expected value of Y when X= 12. Average: Standard deviation Ve have to (a.com Mae * aon of Frat? the expected value of *Y” when «x7 is 12. $0.we ave 1° fs M cece! (%) = 76 " ” Of Y series (7) = 14.8 © of X series = 3.6480 s “an, = 0.99 oof ¥ series Coetticvent of correlation Regression of Yon N 2.5 22 (x -7.6 y 14.8 = 0.99% 55 (XK ) Y — 14.8 = 0.688 (V'- 7.6) Y 14.8 = 0.688. - 5.23 ¥ = 0.6881 - 5.23 + 14.8 = 0.688X + 9.57 When WV is 12 eT = 8.256 + 9.57 = 17.826 Hence the expected value of Y is 17.83. Mathematical Properties: between regre: 1. The geometric me symbolically: sion coefficient is the coetficiem gy to r = Jbxyx byx It can be proved as Nate: I bey is negative, byx will also be negative. Both regression coefficient wil alzebraic sign. If bxy and byx are positive, r will be positive and vice versa, 2 Arithinetic mean of bry and byx is equal to or greater than r bay + byx 2 are independent of change of ori Standard Error of Estimate We found it ne 3. Kepression coef in but not of scale. sary to supplement an ave Wo show how representative the average ix, OF Y for values of ¥ or the value of X f but cannot be tented as 4 previse value. | the regression line, then it would be consid fora series with a measure of dispersion ‘The regression equations help us to predict! Walues of ¥. These are only estimations oP If we have a wide scatter or variation of the © lered a poor representative of the relationshiPa = wo ation for ths line This variation about the line of ie ta sania he Stamnes about an verge Thus, we of squared deviations. But ed 8 - 4. are not the deviations ofthe items from the a rom the arithmetic mean, they are rather th . fe rather the ince OF EVETY oe from the ling of average relations 8 ition OF 0 dot fom the regression line is sym p. (see the diagram) ner ahe squared deviation is: symbolised by Y ~ ¥,, Thus square root y. Thus squs *" Sy = milarly S, = iy X.Jand(Y ~ X) represent the unexplained variation in X and series. [eunexplained Variation in ¥) N S.= [(unexplained Variation in X) N station of standard error of estimates by the above formula is quite tedious A more te tion, Jooottemle . oe EX? - akx - bE N sy? — aZY - bEXY N MISCELLANEOUS ILLUSTRATIONS coefficient of correlation and obtain # weet stration 13.7: Calculate the o he lines of regression st lowing: ro 2 4 3 6 7 8 9 ro 8 10 12 u 13, 14 16 15 hinan estimate of Y which should correspond to the average x= 62 (B.Com. DethD Suton: Calculation of Regression Equation | X series Y series 1 | Deviation from | dx? Y Deviation from | a inean (5) = dx mean (12]= 4 iation Pt eee el EG va Hy <3 16 9 3 - 16 tio® Fy 3 5 A 4 ww fi| 2 jf] 2/4 ; i) 1 2 ° °Statisticg Th 189, 3 1 "Y ay 6 A 7 9 8 i) 9 4 R zy= 45 Zy= 108 Q N=9 Mean® Mean¥ 4s 108 = isa $s s—=12 9 Regresstion Equation of X on Y: X-X = (y-7) oeyiat Oey =a 2095 60 X-5=0.95(¥- 12) X-5=095Y-114 X=0.95Y- 11.445 X= 0.95Y-6.4 Regression of Y on X ¥-¥ = byx(X-X) Lids. =o 2095 60 (Y- 12) = 0.95 (x- 5) Y-12=0.95x-4.75 Y= 0.95X- 4.75 + 12 Y= 0.98x+7.25 “Y” corresponding to the value of X 6.2 ¥=0.95X+7.25 Estimating the value ofpear of Y is 13.14, “1314 ws tion 13.8: A pang) jwstration * el of two « ~ Ment ceca marks as follows. Hdges p an Pre As oo 9 2 eraded ay, yrks BY P a 42 3 F amatic. Performan, " g ce ee performance whicy a re 5 y «ei er Py . | N sino eighth performance MANY marks could ne" Avardeg 977, 2° solution: Let the marks awardeq by jug © expected to have eo by judge y.wehave to find Out the value op y> "GBC P be repr (Bcan® been awarded yin von hen X= 37 Tie Seed by x + Hons) Dethi on “Thiscanbe done godt avarded by ea Computation of p, nding ot tne ee Deviation from mean 43 x By _ 21 =-Py_2_, ME SP = 9g 0-75 Regression Equation of Y on X = (Y~¥) bry (X -¥) ¥- 38 = 0.75 (x43) Y= 0.75X-32.25 +38 Y= 0.7SX + 5.75 =37 Y= (0.75 x 37) + 5.75 = 27.75 + 5.75 y= 33.5 "Iudge Q was present he would have awarded 33.5 marks. when X484 antty of a raw material purchased by a Cy, "Y an ry Statistics The, 01 Iustration 13.92 re ga is given : Yay a prices during the 12 months 0 4 price per Ke (RS) | ___ Quantity Fy i Tony | Price Pe oe pany 110 200 Fenians 100 250 March 0 2x0 Xo 300 June 2 300 iy 2 220 Ptecal 12 220 September 108 200 October 116 210 November Xo 300 December 2 250 (a) Find the regression equations based on the above data, (6) Can you estimate the approximate quantity Likely 10 be purchased ifthe py Rs, 124 per Kg.? ie gh (0) Hence or otherwise obtain the coefficient of correlation between the quantity demanded, Solution: (a) Regression Coefficients : Xon ¥ Sitdine Ee) Ce) bry mw sat by? = 4360 16768 ~ 1.33 4360 16766.66 =- 0.26 1200 12 Price prevaitiy (M.Com 2980 12 248.33 Yon x Yatudy — LEU Lay _ Qadry N Ld* — 4360-0 1344-0 = -3.244Regression Equation: X on ¥ _ _ Yonx | X-X =by(Y-Y) (¥-F) =ax(x - ¥X) X- 100 = — 0.26 (Y — 248.33) ¥ -248,3 244 (¥ — 100) yl X— 100 = — 0.26Y + 64.57 Y ~248.33 = -3.244Y + 324.4 X= -0.26Y + 64,57 + 100 Y = -3.244N + 324.4 + 248,33 = -—0.26Y + 164.57 Y = -3.244X + 572.73 (6) When Price is Rs. 124 Quantity is (V = Rs.124) 244 (124) + $72.73 70.474 :, When Price is Rs. 124, 170.474 Kg can be purchased. (0 Coefficient of Correlation: : retyby + bx J=0.26x—3.244 = V0.843 = 0.92 Mlustration 13.10: Given: N= 50 Mean of ¥ = 44 Variance of x is 2- of the variance of ¥ a6 = 3y- 5X =-180 ptesion Equation of X on ¥ ind: (1) the mean of ¥ d ¥. 2) Coefficient of correlation between XanStatistics T hoory a 7 ‘Ih, 486 Solution: Regression Mean of X: ea 3y — 5X =-180 ~ 5X = —3Y - 180 x= 2y+ 36 ¥ =(3x44 )+36 5 = 26.4 +36 X = 62.4, Mustration 13.11: From the following regression equations find the mean values 0 Y series. Given that the variance of X = 9, 8X — 10Y = — 66 40X — 18Y = 214 1. Average values of X and Y 2. Correlation Coefficient bet tween the two variable, 3. Standard Deviation of Y (M.Com., Kollat@and cA)) 487 i) ok) 2) y = 2544 ~32 Y=y ing the valu i ’ ing He Of Y in equation (1) jitut subst 8X — (10 x 17 fg the mean value of X = ’ lreient of Correlation: (i bs jeulate r we have to find out en ut the value of bxy and byx. the first given equation i we assume that given equation is th Rel aed Comino 1OY = 8X + 66 e equation of Y on xX. y= 0.8X + 6.6 ‘therefore the value of byx = 0.8 The second equation can be taken as the regression equati 4x 18Y = 214 or 40X = 18Y + 214 quation of X on Y x = N24 (i Sandard Deviation: sandard Deviation of ¥ can be calculated by finding out the value of r “p= fbyxx bry = N0.8x045 = Y0.36 r=0.6 S 20.45 oy Now bxy We know the value of r = 0.6 ox = Variance X = V9 =3Statsteg 3 n04s 06— Ossay = 3 * 0.6 18 me ear oY = O45 Standard Deviation of Y= 4 How 13.12: In a correlation analysis, between production "dy, Mustration 13. ae " the following constants were ‘Arithmetic mean ; ‘Standard deviation 4 1 between production and price| =O: Write down the regression equation of price on production ang Calcul feet ere _ the production index is 116, Prey ‘Solution: Let the price index be denoted by Y and the Production indy wos fit an equation of the type Y = a + bx x Regression equation of Y on X soy = ¥-98 =—04 x 0.42 (X— 119) Y- 98 =- 0.168 (x 110) Y=—0.168X + 18.48+ 98 Y=—0.168X+ 116.48 When ¥= 116 Y=~0.168 x 116 + 116.48 19.48 + 116.48 Mustratton 13,13; You are given the following results for the heights (1) and ve of 1,000 workers of a factory, F = 68" ox = 2.5" r=06 F =150 Ibs, Gy = 20 Ibs, Estimate from the above data: © The weight of a Particular factory worker who is 5' tall, (i) The height of a Particul; 1 ar factory worker whose weight is 200 Ibs. (BC= 150, ox= 2.5 os » ay = vio" equation of ¥ on y ra a4 429 ie ‘ Y-y = 1%, x Peo ax (* ~ xy 50 = 4620 ¥—ls0~ 45 2.5'% ~ ox) Y~150 = Age 64) NX 3264 YA BK 6 15, Yq 0 3264 yen X= 604 8X 196 4 ner Y=43 * 60-1764 288-176 4 = 116 the weight of a factory Worker who is 5 4 ion equation of X on Y eet tall is 111.6 Ibs, snes x-® =r _7) X-68 = 0525 (7-150) X ~ 68 = 0.5 « 0.125 (Y— 150) Y ~ 68 = 0.0637 -9.45 X = 0.0637 -9.45 + 68 = 0.063 ¥- 58.55 When Y= 200, X = 0.063 x 200 + 58.55 = 12.6 + 58.55 X= 7115 ‘Thus the height of a particular factory worker whose weight is 200 Ibs = 71.75 inches. Ihstration 13.14: The following results were worked out from the scores in Statistics and demaics in a certain examination: ‘Scores in Maths (Y) 47.5 17.8 =~ 0.42. Find both the regression = 50 and also estimate the rx (B.Com. Delhi) “Scores in Statistics (X) 39.5 10.8 ta Sodard deviation: en X and Y Kal Pearson's correlation coefficient betwe the value of ¥ fo Us . wR these regression equations and estimate 4X for Y= 30,™~ Statistics Theory fig =, y-F) > er —(Y ken tay F =395,r--042, oF = 10.8, oy= 174 > Substituting these values, 10.8 108 (y - 47.5) X-39.5 = 0.427756 X— 39.5 = 0.255Y— 12.113 X = 0.255 (¥- 47.5) X-395 =0.255Y- 12.1 13 Y= 30, X shall be ms X = 0.255 (30) + 27.387 X = 7.65 + 27.387 = 35.037 Regression line of Y on X Substituting the given values 178 = 47.5 = 0.42x —— (x - 39.5 ¥-475 = 042% 73 ) ¥- 47.5 = 0.692 (X- 39.5) ¥—47.5 = 0.692 X- 27.334 ¥ = 0.692X + 20.166 When X= 50, y shall be = 0.692 (50) + 20.166 Y = 54.766 Ilustration 13.15: Given the following data, estimate the marks in Mati a student who has scored 60 marks in English. Mean of Marks in Mathematics ES I 80 Mean of Marks in English $0 S.D. of Marks in Mathematics 15 S.D. of Marks in English 10 Sostctent of correlation 04 , X denote marks in Mathemati denote marks i estimate marks in Mathematics fora ae = seat i as in En ‘ to fit regression of ¥ on ¥ “ecured 60 aadee = 40,7 2 59 ¥ = 50.025 =04 =\S.0y =10 X= 0.6Y -30 5 49 = 0.674 59 Y=60 X= 0.6¥ + 50 =0.6 « 60450 = 36~s0 X= 86 gene oF 8 student who has obtained 60 marks in English, the likely marks in Mathematics 6 nosteation 13.16: Calculate the coefficient of correlation and obtain the lines of regression ap islowine data: eo ; 9 8 10 2 u B 14 ‘estimate of Y which should correspond to the average X= 6.2. in an ad (MBA. Delhi) Solution: Calculation of Regression Equation Ba Y (Y-Y) ied by 2B i= Regression equation of Y on X ave > haveStatistics Theo, TY an, Wn, a eee 492 ¥-q z 2824 a7 BY(x-*) y-¥ “32 26 \y —4) y-11 = 556 y— 11 = 0.929 (X— 4) 11 = 0.929X- 3.716 y- y=0.929X-3.716+ 11 = (929K + 7.284 x= 6.2Y will be When y= 0.929X + 7.284 = 0.929 x 6.2 + 7.284 = 5.76 + 7.284 y= 13.044 Regression equation of X on Y Lxy = 26,Ey? = 28 X =4,Y¥=11 26 x-4 =e) X— 4=0,929Y—11 x 0.929 = 0,929Y— 10.219 X=0.929Y— 10.219 +4 0.929Y-6.219. Mlustration 13.17: From the following data of the rainfall and production of rice, ‘most likely production corresponding to the rainfall of 40”, Rainfall (inches) Production (Quintals) 50 Mean Standard deviation Coefficient of correlation = + 0.8 Solution: Let Production be denot . led by Y i Regression equation of ¥ on x 'Y Yand rainfall by x. Y-¥ =rZex_ x ox¥ =50,X =35,oy=8,0x=5,r=0.8 Y- 50 =0.8xS(X -35) y-50 =Sur-s9 ¥— 50 = 1.28 (X35) ¥— 50 = 1.28X-44.8 Y= 1,28X + 50-44.8 =1.28X+5.2 x=40 Y= 1.28X+5.2 Y= 128X x 40 + 5.2 51.2452 ¥=564 likely production corresponding wyhen to rainfall of 40" is 56.4 quintals. ice (X) and supply (¥) of a commodity, the ss the most tion 13.18: From 10 observations on pri es ery figures were ‘obtained (in appropriate units). sto rx =130, SY = 220, EX? = 2288, EXY = 3467 timate the supply when ne of regression of Yon Xand interpret the result. Est ae : (B.A. Hons. Delhi) Comp Soe ‘Nand Yhere denote the variable and not the deviations. The line of regression shall igeto be obtained from the method of least squares. egession of Y on X Yy=at+by Tofind a and b SY =NatbEX EXY =abX+bEX? WN =10, EX =130, ZY = 220 sxY =3467, EX? = 2288 e Substiuting the values, , 220 = 10a + 1306 = eB 3467 = 130a + 22886 an ( » 3) Mokiply (1) by 13 Senet 130a + 1690 = 2860 ing equation (3) from equation (2) 598b = 607494 of b in eqv 10at 1306 =? 10a + 130 * 1.02 = 220 10a = 220 - 142.00 1a = 87.40 an k74 substituting the value ¢ 2 in the equation Yeat bx Y= 8.74 + 1.024 X= 16, ¥ will be ¥~ 8.74 + 1.02 * 16 = 8.74 + 16 = 25.06 When the price is 16 units, the probable supply is 25, Ilustration 13.19: The following table gives tbe various values of OF two y, Putting a = 8.74, 6 = 1.0 When a 42 44 y 56 49 K Determine the regression equa arl Pearson’s coefficient of correla Calculation of Regression Equation as (X — 60) = 4 a a (Y= 59) = 3 -18 56 dy| 44 -16 3 9 58 49 - a 53 6 -Iion Equation of X on ¥: a8 i pap soy rp) ty —( Ede Bay bxy = bry =2: ¥~ 64.57 =22(¥_ 59,29) X- 64.57 =2.2Y~ 130.44 X= 2.2Y- 130.44 + 64.57 X= 2.2Y - 65.87 .ssion Equation of Y on X. al Y-¥ =byx(x—¥) Ededy— (24) byx = eax? EA N ross-(22%2) oT) ois ot 3930-22, 2930x7-1024 i = BIS 64__ 7251 _ 59 20510-1024 19486 byx =0.37 y- 37 (V- 64.57) Y- 3 7X — 23.89 Y = 0.37x + 35.4 Coefficient of Correlation r= afbxyx byx = 2.20.37 = V0.814 r=+09A Statistics The 0 ice in Bomba: C an we) “OTeSPONd ing aT t 496 i likely jon 13.20: Find the most > isa he following data: “ : Rs. 70 at Calcutta () from # Bombay “Average price Standard deviation r= +08 BCom Tao 1Ow, M Solution: ‘Average price at Bombay oF X= 67 Average price at Calcutta or Y = 65 Standard deviation at Bombay or ox ~ 3.5 Standard deviation at Calcutta or OY = 2.5 Coefficient of correlation or “r” = 0.8 We have to find out the most likely price in Bombay (X) corresponding to bri 70 in Calcutta (1) Regression of X on Y x-¥ =r =-¥) oy 3.5 X - 67 =0.8——(Y — BIS 65) X - 67 = 1.12 (¥- 65) X - 67 = 1,12Y-72.8 X=112Y-5.8 When Y is 70 X=112Y—-5.8 = (1.12 x 70)—5.8 =78.4-5.8 = 72.6 Therefore the price in Bombay is Rs, 72.6. Mustrati 3 i rece ation rae e table gives the age of cars of certain make an ’ regression equation for costs rela jated to age: Aa of cars in years: = faintenance cost 4 7 5 Re hundreds Jo 20 25 i Solution: Since it a th € maintenance cost depends on age, we denote age by Xand ‘maint Cost by ¥ and fit a regression of Y on XR i caression Equation of Yon x ae 0 t— —20) = ° 10 20) = dy) ay ' 20 -10 i 25 Q 0 30 g 2s Eds? = 20 ay 100 Edy? = 225 .25 (X- 5) ¥ - 21.25 = 3.25X- 16.25 Y= 3.25X +5 n 13.22: Calculate correlation coefficient and regression coefficient for the following ratio ij 2 4 6 8 10 12 4 1 4 2 5 10 4 u" 12 Fd the estimate of y when x = 13 (B.A. Madurai) Sulation:498 Stat xX on ¥ 'stics 7, Regression coefficient of ¥ on 7 Edxdy — E2)* Edy) cf bxy = ———______ 2 _ (Zdy)? Ldy’ e = @xe a7 82 Regression coefficient of Y on Ldedy - E2)* Edy) byx =“ See? — 2) N (0) x(-1) ea 112- 7 _ 82 ~ 112 Calculation of coefficient of correlation 1 = byxbyx = V0.847x0.732 = 0.787 = 0.732 : y-¥ =r2(x-X) ox yok = 6.857 ae = yg 7 x= 0.732 Y— 6.857 = 0.732 (¥- 8) Y—6.857 = 0.732X— 5.856 + 6.857 ¥ = 0.732X— 1.0001 ° =0.732X+ 1.001 When Pa Y = 0.732 (13) + 1.001y 40 _— Statisticg qT 5 heory 502 0.04 hey ee Y-25= 0043 1, 70.00% -2.5) , ae NS) ous Y~ 2.5 =0.04x_9 1, 7 000Y- ” = . aa 0.158 43.17 Y= 0.044943, N= 0.067 0.18 Poe, s \~ 0.007 + 3.02 04K + 2.39 Po IB (d) When X= 22 . When Y= 12 = 0.04y ro) en eet: Y= 0.04" + 235 V= 072 +302 Y= 0.88 + 2.37 pee Y= 3.25 (c) The two Fa geaiktscn ve = 004 ny 0. Mlustration 13.26: Find the mean of variables Vand Y and the Correlation coef, the following regression equations: ice 2Y-=50 3Y-2v=10 (B.Com 6 Solution: c 2Y-x=50 3Y-2V=10 Multiply equation (1) by 2 and subtract equation 2 from it, 4Y-2=100 3Y-2V=10 Y=90 By substituting the value of Y in the first equation 2(90)-x=50 -X =50-180 -X=-130 X=130 Therefore Mean of X or T = 130 Mean of ¥ or 7 = 99 We assume that 27 X = 50 is the regression equation of ¥ on x 3Y~ 2X = 10 is the Fegression equation of X on ¥ Regression equation of Xon y 3Y~2¥= 10 or 2¥ = 3y_ 10 3 10 *X=a=y_l0 2 2ff aa { os . vc X= sys Neg a coetticient of X on ¥ ee bry = 15 on Hauation of Yon X: we 2¥-X=50 y=%_50 2 2 Y= 0,SX ~ 25. on coefficient of Yon X ssi ew byx = 0.5 scien of correlation: cot 1 = bey xiyx om = Vi5K0S = 075 r= 0.87, an stations 13.27: Calculate: ) Mearession equation of X on Y and Y on X from the following data: a™ = “ : eximate X wher y = 20. ~Q) F 10 12 3 17 18 Er a or Pon 6) (BCom, MCom. Madurai, Jammu, Banaras, Agra, Punjab, Mysore) Calculation of Regression Equations x | y | ws | y | ¥ (Y =8) y Ex" = 46 () Regression Equation of X on ¥: x-X 6,Statistics The, Oy a 504 a, ty _ 4 Me, re gee oy “zy? 40 _14= 17-8) oo a=¥-8-X7Y- 8414 x xX=¥+6 x: Regression Equation of Yon . ; y-7 =r t(x-%) pe 2 BY 49 20.87 oO, Ze? 46 y-8=0.87(X- 14) y — 8 = 0.87X- 12.18 Y= 0.87% - 12.18 +8 Y= 0.87X — 4.18 (ii) When ¥ is 20 X=Y+6 X=20+6 X=26 The estimated value of X when Y is 20 = 26. Mlustration 13.28: You are given the following data: Arithmetic Mean Standard deviation Correlation coefficient ( Find the two regression equations (i) Estimate the value of X when Y = 75, (B.A. Dethi, Madurai, Bombay, B solution ay, B.Com. Poona, Punjab, Agra, Bang ( Regression Equation of X on Y: x-¥ =r (y_7) ey X =36,¥ =85,, = 0.66,0, = 11,0, =8 *~36 =066U y_ o- (Y ~ 85) *~ 36 =0.91(¥_ 85) *~36 =0.91¥_ 7735X= O9o1y é DOW a7 a5, 505 ¥~091¥ argc” son Bauation oF F008 Las os “(N= 8) o ¥ =85,¥=3 36.7 = 0.66.0, = 8.0, =11 Y-85 = 8 ' 5 = 0.66—(¥ ~3, 9 Ti (* ~ 36) — 85 = 0.48(x ~ 36) Y¥— 85 = 0.48x_ 1728 Y = 0.48¥ - 17.28 + 85 Y= 0.48X + 67.72 a .91(75)— 41.35 8.25 41.35 = 26.9 jon 13.29: A survey wa qos” ee rae Se ona to study the relationship between expenditure modation ‘on food and entertainment (¥) and the following results dard Deviation 63.15 22.98 re on accommodation (X) in Rs. pend ‘od and entertainment (Y) in Pagers 0” 1 coefficient of Correlation rate down the regression equation and estimate the expenditure accommodation is Rs. 200. Ww apexpenaiture 0” i (B.Com, Madurai, Kerala, Jammu, ‘on food and entertainment, M.Com., Madras, Bangalore) Solutior Regression equation of Yon X _ _ Sy = y-¥ =r (X-%) oF 22,98, 6, = 63.15 X =173,7 = 0.57.0, Y¥ =47.86 22.98 22.98 (y 173) 573.15 y“ve y= 207K + 1205 When ty 200 y= 0.207200) 12.05 ALA 1205 ~ $34 timate the tration £8.40; Given the follawsnke data, estimate the value of Y sehen y Mhuvtration #580: ped Hind out the cooteient of correlator , Tho mean value of Y= 552 Ihe mean value oh 27TH The regression cocfticient of ¥ an X oe Tho regression coctticient of Van Y= (BCom, MCom,, Madurai, Agra, Kolkata _ Pung Hor estimating the value of Y when X ~ 60 we have to fing the repre. a ution: of Yon NX 6 . par" (X-X) y-¥ => 6 ¥ =27.9,r—orb,, =-1.5 = X = $3.2 ¥~27.9 =-1.5 (¥~ $3.2) Y¥—27.9 =~ -1.5X + 79.8 Y= -15X + 79.8 427.9 Y= -1.5X+ 107.7 When X= 60 Y =-1.5 (60) + 107.7 Y=~90+ 107.7 Y=17.7 = by xb, = V-0.2x-15 = J03 = 0.548, Mustration 13.31: From the following information calculate line of regression of Yc _—— x Y Mcan 40 Standard Deviation 10 rs Correlation Coefficient 0.7 (B.Com., Kerala, MK, Madras, Mysore, Js Regression Line of ¥ on x :1 Algg mu) X =40,¥ ~ 60, 02,9, = 10,0, =15 ¥~60 =0.2!3¢y 3, = To X= any ¥- 60 =1.05(x— a0) Y¥~ 60 = 105y~ 42 ¥— 60 = 1.05x ~ 424 60 Y= 108x418 io 13.32: Find the most likely production corre: jt fesponding to a rainfall 40" from the ee een a Rainfall a — reduction ‘Average = Hon ‘standard Deviation 500 Kes Coefficient of correlation 100 Kes. soation aegressi a: Let production be denoted by Y and rainfall by 2. (M.Com. Bharathidasan) jon Equation of Y on X: Y-¥ = rex ®) Y-500 = 0.8 500; r = 0.8, 0, = 100, 0, = 5; X =30; eK 30) Y¥-500=16 GN) Y-5 When X = 40. Thus the most likely pro Uustration 13.33: Two rani 3X + 2Y- 6X+Y- Find the mean values and the i 25, find the standard deviation of Y duction corresponding to a rai ‘dom variables have the follo 16X — 480 16X - 480 + 500 Y= 16X+20 Y= 16 (40) +20 = 640 + 20 = 660Kgs. 00 = nfall of 40" is 660 kes. wing regression equations: 26=0 31=0 coefficient of from the data given (BA. Delhi, correlation between X and Y. if the variance of above. M.Com. Kolkata, MBA Rajasthan)— N Statistics Th 180, 608 _ Solution: ay ng s, Nand Y: Mean values of YaNd YS 9g ove+ ¥a3l ptract equation from it jation | by 2 and su Multiply equ poe) 3y=21 y=7or¥=7 Substituting the value of ¥ in equation 2. 6Y+7=31 ov 31-7 6v = 24 Nsdor¥=4 Coefficient of Correlation: To calculate r we have to find out the value of 4 xy and 4, "Yr, equation (1) as regression equation of Y on x. 2Y = 26 - 3 3 ¥ 013-2. of bey = A Taking equation (2) 6v~31-Y¥ 311 Sood = eg rts r= Jory xbyx = p at =~ Standard Deviation of ¥: =3 byx = yt = Sire -05,0, = V5 25 Substituting the values =052 s ~5(-1.5) =~0.50y -7$=0.Scy oY =15peviation vat of correration Fe ihe 190 FeBression lines, Gale ik les when i oe" ine likely $4 advertisement ¢ i # i xpenditure ; No should be advertisement expenditure i¢ ieee is Rs. 15 crores, Poa ™PAny wants to attain sales target of Rs on: osm Equation of X and y (MBA, M.Com., Dethi) @ X-X =rSey_z 3, 7%) X =10;r= %r=0.8;0, =3:0, =12;7 =90 X-10 =082 12-90) X—-10=0.2 (Y- 90) X-10=0.2Y-18 X=-8+02Y repession Equation of Y on X — 6 Yy-Y —(x-X) oS, y-90 = 0.9/2 (X-10) ¥— 90 =3.2 (X- 10) ¥— 90 =3.2X- 32 Y= 58 +3.2X (IX (advertisement Expenditure) is Rs. 15 crore y=32%15+58 Y= 48 + 58 = 106 Y = Rs. 106 crores (If Y (sales) target is Rs. 120 crores X= 0.2 « 120- 8 =24-8= 16 X= Rs. 16 croresStatistics The, 0 etn atin De Universi, hp statistics in BLCOM: Seamination OF re vi ery vn Mean marks it Advanced Account 0 , statistics =35 .D, of marks in statistics =7 SD, of marks 1" ‘Advanced Account a0 Coefficient of Correlation petween the (wo subjects =08 From the two regres yn fines, calculate the expected marks in Ady, marks secured by a student in Bus stics are 40. anced A, tks in Advanced Account be denoted by X and st B.Com, Coun atistics by he Solution: Let 1) on Equation of ¥ on ¥ Regressi 30 = 0.80 (¥-35) (XY - 30 = 1.143 (Y-35) AX — 30 = 1.143 ¥-40.005 V=-10.005 + 1.143 When ¥ (Business Statistics Mark) is 40 . X= —10.005 + 1.143 x 40 X =-10.005 + 45.72 X= 35.72 or 36 marks. LIST OF FORMULAE xony Regression Equations X=at by Y on X Normal equation Ream ET) : vr at bx EX =NA+bEX oY Sees) EY =Na+bLy EYX =aEY +bEy? XY =akK+o5r? Geos ‘egression coefficient oye =r ox514 1 Values of pyre taken qicient of Correlation r Cod QUESTIONS ve TYP Questions racer tHE following statements are “True” or “False”: version ‘analysis reveals average relationship between two variables. rare coefficient of ¥ on X’ is denoted by the symbol bxy’ ree eatession’ was first used by Karl Pearson STMT regression fine cut each other at the point of average of X and Y. “negron coefficients are independent of change of scale and origin. vero relationship between correlation coefficient and regression coefTicient vo regress 's coincide with each other, there is no correlation between the variates. are roo! he value of 1M oeficient of correlation vier the magnitude of the standard error of estimate, the greater is the variability of points round the regression line 1 re regression Tine is not derived fi tans: True — 1, 4, 9, 10 False — 2, 3, 5, 6.7.8 iL Ful im the: blanks: the variable, we are trying to predict, + Both the regression coefficients cannot {both the regression coefficients are negative, 4 The regression analysis measures between X and Y. {When one regression coefficient 1s positive, the other would also be The purpose of regression is to study between variables. The under-root of two coefficients gives us the value of corr eh Dependent Variable, 2. Exceed, 3. Negative 4, Dependence, 5. P' Regression] jon line: tof the product of two regression coefficients does not give from the enuire population, it 1s derived from a sample, is called the one the correlation coefficient would be elation coefficient. rositive: 6. Dependence;Statistics Theo, Ary Jn, 512 | wer? ML Tick the correct nse 1. the greater the value OOF (a) The better are esti? ‘hy The worst are the stimates (6) The cs di ; Chena sression Hines cut each other making an an 2. Where r is zero the reg! 0 es (d) None of these. (OW 3. The farther th a) Greater will be degree ; i ‘The lesser will be the degree of correlation (c) Does not matter. oe 4, The regression lines cut each other at the point of: (a) Average of X and ¥ (6) Average of X only (c) Average of ¥ only. 5. When the two regression lines coincide, then r is: (a) 0 (®-I @1 (@ 05. [Ans: 1 (a); 2. (d); 3. (b); 4. (a); 5. (c). THEORETICAL QUESTIONS 1. Explain the concepts of correlation and regression, bri them. Also state their numerical measures, (Bc, ‘0 2. Explain clearly why there are usually two lines of Fegression. Point out the cas dl is one line of regression, Illustrate your answer by diagram, Cie. ay 3. What is meant by ‘regression’? Why should there be, in general, ca each bivariate distribution? What do you think the coefticie i i ‘nt of correl: would be if the two regression li ij and Si thera 4, Distingui ctween ‘correlation’ and « a we a ome clearly veiueen Correlation’ and Tegression’ analysis, ( . Concepts of regression an i iat ir utility j of economic engunies 8 d ratio of variation and state me Ae in F L.A. Econ. 1g? (MBA, J cient and the regression lines. (B.Com M lon coefficients? (M.Com. Ma 5, obtain through regression analysis, ence. Ble of two regression lines cut each other: Je tw s of correlation inging out the inter-relationshin 6. What is re ion? is thi Sression? How is this concept useful to business forecastin; 7. i i Explain the meaning of Tegression coeffi | From the follows PRACTICAL PROBLEMS in €quations : 8 data fing the ¢ efficient of correlation and obtain the !0