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CA FOUNDATION COURSE
PAPER 3 – QUANTITATIVE APTITUDE
Batch: VCR 1&2 / Rev. J24 Exam; Marks: 50
Topics: Correlation & Regression Time: 1:30 Hour

1. Bivariate Data are the data collected for

(a) Two variables (b) More than two variables
(c) Two variables simultaneously (d) Two variables at different points of time.

2. For a bivariate frequency table having (p + q) classification the total number of cells is
(a) P (b) p + q (c) q (d) pq

3. Some of the cell frequencies in a bivariate frequency table may be

(a) Negative (b) Zero (c) a or b (d) None of these

4. Correlation analysis aims at

(a) Predicting one variable for a given value of the other variable
(b) Establishing relation between two variables
(c) Measuring the extent of relation between two variables
(d) Both (b) and (c)

5. If the values of y are not affected by changes in the values of x, the variables are said to be
(a) Correlated (b) Uncorrelated (c) Both (d) Zero

6. When the variables are not independent, the correlation coefficient may be zero
(a) True (b) False (c) Both (d) None

7. When high values of one variable are associated with high values of the other & low values of one variable
are associated with low values of another, then they are said to be
(a) Positively correlated (b) Directly correlated (c) Both (a) & (b) (d) None

8. If high values of one tend to low values of the other, they are said to be
(a) Negatively correlated (b) Inversely correlated (c) Both (a) & (b) (d) None

9. Correlation coefficient is a pure number.

(a) True (b) False (c) Both (d) None

10. Correlation coefficient is ………………… of the units of measurement.

(a) Dependent (b) Independent (c) Both (d) None

11. If two variables x and y are independent then the correlation coefficient between x and y is …………. .
(a) Positive (b) Negative (c) Zero (d) One

12. If x denotes height of a group of students expressed in cm. and y denotes their weight expressed in kg, then
the correlation coefficient between height and weight
(a) Would be shown. in kg. (b) Would be shown in cm.
(c) Would be shown in kg. and cm. (d) Would be free from any unit.

13. Correlation coefficient is dependent on the change of both origin & the scale of observations.
(a) True (b) False (c) Both (d) None

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14. What is spurious correlation?
(a) It is a bad relation between two variables.
(b) It is very low correlation between two variables.
(c) It is the correlation between two variables having no causal relation.
(d) It is a negative correlation.

15. Age of Applicants for life insurance and the premium of insurance - correlations are
(a) Positive (b) Negative (c) Zero (d) None

16. "Unemployment index and the purchasing power of the common man" - correlations are
(a) Positive (b) Negative (c) Zero (d) None

17. The correlation between height and intelligence is ……….

(a) Zero (b) Positive (c) Negative (d) None of these

18. The correlation between sale of cold drinks and day temperature is ………………….
(a) Zero (b) Positive (c) Negative (d) None of these

19. The correlation between Employment and Purchasing power is ………………………..

(a) Positive (b) Negative (c) Zero (d) None of these

20. In case 'The ages of husbands and wives' correlation is

(a) Positive (b) Negative (c) Zero (d) None

21. A small value of r indicates only a………………… linear type of relationship between the variables
(a) Good (b) Poor (c) Maximum (d) Highest

22. …………………… is a relative measure of association between two or more variables.

(a) Coefficient of correlation (b) Coefficient of regression (c) Both (d) None

23. Neither y nor x can be estimated by a linear function of the other variable when r equals
(a) + 1 (b) -1 (c) 0 (d) None

24. What are the limits of the correlation coefficient?

(a) No limit (b) -1 and 1, including the limits
(c) 0 and 1, including the limits (d) -1 and 0, including the limits.

25. If r is the correlation co-efficient, then

(a) r  1 (b) r  1 (c) lrl  1 (d) lrl  1

26. If y = a + bx, then what is the coefficient of correlation between x and y?

(a) 1 (b) -1 (c) 1 or -1 according as b > 0 or b < 0 (d) None of these.

27. In case the correlation coefficient between two V variables is 1, the relationship between the two variables
would be
(a) Y = a + x (b) Y = a + bx, b > 0 (c) Y = a + bx, b < 0 (d) Y = a+ bx, both a and b being positive.

28. If a, b, c, d are constants such that a and c are of opposite signs and r is the correlation coefficient between
X and Y, then the correlation coefficient between ax + b and cY + d is -
(a) (a / c)r (b) (c / a)r (c) r (d) -r

29. There is a high direct association between measures of 'cigarette smoking' and 'lung damage. The
correlation coefficient consistent with the above statement is -
(a) 0.30 (b) 0.80 (c) -0.80 (d) -0.30

30. For finding degree of agreement about beauty between 2 Judges in a Beauty Contest, we use
(a) Scatter diagram (b) Coefficient of rank correlation
(c) Coefficient of correlation (d) Coefficient of concurrent deviation ·

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31. Scatter diagram helps us to
(a) Find the nature correlation between two variables
(b) Compute the extent of correlation between two variables
(c) Obtain the mathematical relationship between two variables
(d) Both (a) and (c)

32. Scatter diagram is considered for measuring

(a) Linear relationship between two variables (b) Curvilinear relationship between two variables
(c) Neither (a) or (b) (d) Both (a) and (b)
33. Which of the following statements is not false?
(a) Scatter diagram fails to measure the extent of relationship between the variables.
(b) Scatter diagram can measure correlation only when the· variables are having a linear relationship.
(c) Scatter diagram can measure correlation only when the variables are having a non-linear relationship.
(d) None of these.

34. If the plotted points in a scatter diagram are evenly I' distributed, then the correlation is
(a) Zero (b) Negative (c) Positive (d) (a) or (b)

35. If the plotted points in a scatter diagram lie from upper left to lower right, then the correlation is
(a) Positive (b) Zero (c) Negative (d) None of these

36. If all the plotted points in a scatter diagram lie on a single line, then the correlation is
(a) Perfect positive (b) Perfect negative (c) Both (a) and (b) (d) Either (a) or (b)

37. The more scattered the points are around a straight line in a scattered diagram, the………………..is the
correlation coefficient.
(a) Zero (b) More (c) Less (d) None

38. The correlation coefficient being + 1 if the slope of the straight line in a scatter diagram is
(a) Positive (b) Negative (c) Zero (d) None

39. The correlation coefficient being -1 if the slope of the straight line in a scatter diagram is
(a) Positive (b) Negative (c) Zero (d) None

40. Product moment correlation coefficient may be defined as the ratio of

(a) The product of Standard deviation of the two variables to the covariance between them
(b) The covariance between the variables to the product of the variances of them
(c) The covariance between the variables to the product of their Standard deviation
(d) Either (b) or (c)

41. Covariance measures ………………………..variations of two variables.

(a) Joint (b) Single (c) Both (d) None

42. If the coefficient of correlation between x and y is 0.28, co-variance between x and y is 7.6 and the variance
of x is 9, then the S.D. of y series is;
(a) 9.8 (b) 10.1 (c) 9.05 (d) 10.05

43. If the covariance between two variables is 20 and the variance of one of the variables is 16, what would be
the variance of the other variable?
(a) More than 100 (b) More than 10 (c) Less than 10 (d) More than 1.25

44. If the relationship between two variables x and y is given by 2x + 3y + 4 = 0, then the value of the
correlation coefficient between x and y is
(a) 0 (b) 1 {c) -1 (d) Negative

45. Two variables X and Y are related as 4x + 3y = 7, then the Correlation between x and y is -
(a) Perfect Positive (b) Perfect Negative (c) Zero (d) None of these

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46. Find the product moment correlation coefficient from the following information:
X 2 3 5 5 6 8
Y 9 8 8 6 5 3
(a) -0.93 (b) 0.57 (c) --0.49 (d) 0.73

47. Examine the correlation between age and blindness on the basis of the following data.
Age in Years No. of persons (in 000’s) No of blind persons
0 – 10 90 10
10 – 20 120 15
20 - 30 140 18
30 – 40 100 20
40 – 50 80 15
50 – 60 60 12
60 – 70 40 10
70 - 80 20 06
(a) 0.73 (b) 0.96 (c) 0.58 (d) 0.37

48. Coefficient of correlation between x and y for 20 items is 0.4. The AM'S and the SD'S of x and y are known
to be 12, 15, 3 and 4 respectively. Late on, it was found that the pair (20, 15) was wrongly taken as (15, 20).
Find the correct value of correlation coefficient.
(a) 0.28 (b) 0.31 (c) 0.53 (d) 0.47

49. From the following data

X 2 3 5 4 7
Y 4 6 7 8 10
The coefficient of correlation was found to be 0.93. What is the correlation coefficient between u and v?
U -3 -2 0 -1 2
V -4 -2 -1 0 2
(a) – 0.93 (b) 0.93 (c) 0.57 (d) – 0.57

50. Referring to the data presented in Question above, what would be the correlation coefficient between u
and v?
U 10 15 25 20 35
V -24 - 36 - 42 - 48 - 60
(a) – 0.6 (b) 0.6 (c) – 0.93 (d) 0.93

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