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Published on: 06/09/2019
Correlation and Regression Analysis
Download Tamil Nadu 11th Standard Business Maths and Statistics question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.
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Take MCQ Business Maths and Statistics Test

1.
Calculate the coefficient of correlation from the following data:
ΣX = 50, ΣY = –30, ΣX2 = 290, ΣY2 = 300, ΣXY = –115, N = 10
2.
The following table shows the sales and advertisement expenditure of a form
| Title | Sales | Advertisement expenditure(Rs.Cross) |
| Mean | 40 | 6 |
| SD | 10 | 1.5 |
Coefficient of correlation r = 0.9. Estimate the likely sales for a proposed advertisement expenditure of Rs. 10 crores.
3.
From the following data calculate the correlation coefficient Σxy = 120, Σx2 = 90, Σy2 = 640
4.
5.
The following information is given
| Details | X(in Rs.) | Y(in Rs.) |
| Arithmetic Mean | 6 | 8 |
| Standard Deviation | 5 | \(\frac{40}{3}\) |
Coefficient of correlation between X and Y is \(\frac{8}{15}\) . Find (i) The regression Coefficient of Y on X (ii) The most likely value of Y when X = Rs.100.
6.
Find coefficient of correlation for the following:
| Cost(Rs) | 14 | 19 | 24 | 21 | 26 | 22 | 15 | 20 | 19 |
| Sales(Rs) | 31 | 36 | 48 | 37 | 50 | 45 | 33 | 41 | 39 |
7.
In a laboratory experiment on correlation research study the equation of the two regression lines were found to be 2X–Y+1 = 0 and 3X – 2Y + 7 = 0. Find the means of X and Y. Also work out the values of the regression coefficient and correlation between the two variables X and Y.
8.
An examination of 11 applicants for a accountant post was taken by a finance company. The marks obtained by the applicants in the reasoning and aptitude tests are given below.
| Applicant | A | B | C | D | E | F | G | H | I | J | K |
| Reasoning test | 20 | 50 | 28 | 25 | 70 | 90 | 76 | 45 | 30 | 19 | 26 |
| Aptitude test | 30 | 60 | 50 | 40 | 85 | 90 | 56 | 82 | 42 | 31 | 49 |
Calculate Spearman’s rank correlation coefficient from the data given above.
9.
The variable which influences the values or is used for prediction is called________.
Dependent variable
Independent variable
Explained variable
Regressed
10.
The variable whose value is influenced (or) is to be predicted is called ________.
dependent variable
independent variable
regressor
explanatory variable
11.
Correlation co-efficient lies between ______.
0 to ∞
-1 to +1
-1 to 0
-1 to ∞
12.
If the values of two variables move in opposite direction then the correlation is said to be ______.
Negative
Positive
Perfect positive
No correlation
13.
Example for positive correlation is______.
Income and expenditure
Price and demand
Repayment period and EMI
Weight and Income
1.
\(r =\frac{N \Sigma X Y-(\Sigma X)(\Sigma Y)}{\sqrt{N \Sigma X^2-(\Sigma X)^2} \sqrt{N \Sigma Y^2-(\Sigma Y)^2}} \)
\(=\frac{10(-115)-(50)(-30)}{\sqrt{10(290)-(50)^2} \sqrt{10(300)-(-30)^2}} \)
\(=\frac{-1150+1500}{\sqrt{400 \times 2100}}=\frac{350}{916.52}=0.382\)
2.
Let the sales be X and advertisement expenditure be Y
Given \(\bar { X } \) = 40, \(\bar { Y } \) = 6, σx = 10, σy = 1.5 and r = 0.9
Equation of line of regression x on y is
X -\(\bar { X } \) = r\(\frac { { \sigma }_{ x } }{ { \sigma }_{ y } } (Y-\bar { Y } )\)
X - 40 = (0.9)\(\frac{10}{1.5}\)(Y - 6)
X - 40 = 6Y - 36
X = 6Y + 4
When advertisement expenditure is 10 crores i.e., Y = 10 then sales X = 6(10) + 4 = 64 which implies sales is 64.
3.
Given Σxy = 120, Σx2 = 90, Σy2 = 640
Then r = \(\frac { \Sigma xy }{ \sqrt { \Sigma { x }^{ 2 }\Sigma { y }^{ 2 } } } =\frac { 120 }{ \sqrt { 90(640) } } =\frac { 120 }{ \sqrt { 57600 } } =\frac { 120 }{ 240 } \) = 0.5
4.
5.
\(\bar{X}\) = 6, \(\bar{Y}\) = 8, \(\sigma _x=5\)
\(\sigma_y=\frac{40}{3}, \quad r=\frac{8}{15} \)
\(b_{y x}=r \frac{\sigma_x}{\sigma_y}=\frac{8}{15}\left(\frac{40}{3 \times 5}\right)=\frac{64}{45}=1.422\)
Regression line of Y on X is
\(Y-\bar{Y}=b_{y x}(X-\bar{X}) \)
Y - 8 = 1.422(X - 6)
Y = 1.422 X - 8.532 + 8
Y = 1.422 X - 0.532 .
If X = Rs 100,
Y = 142.2 - 0.532 = Rs 141.67
6.
| X | Y | x2 | y2 | xy |
| 14 | 31 | 196 | 961 | 434 |
| 19 | 36 | 361 | 1296 | 684 |
| 24 | 48 | 576 | 2304 | 1152 |
| 21 | 37 | 441 | 1369 | 777 |
| 26 | 50 | 676 | 2500 | 1300 |
| 22 | 45 | 225 | 1089 | 495 |
| 15 | 33 | 225 | 1089 | 495 |
| 20 | 41 | 400 | 1681 | 820 |
| 19 | 39 | 361 | 1521 | 741 |
| \(\sum\)X = 180 | \(\sum\)Y = 360 | \(\sum\)x2 = 3720 | \(\sum\)y2 = 14746 | \(\sum\)xy = 7393 |
\(r =\frac{N \Sigma X Y-(\Sigma X)(\Sigma Y)}{\sqrt{N \Sigma X^2-(\Sigma X)^2} \sqrt{N \Sigma Y^2-(\Sigma Y)^2}} \)
\(=\frac{9(7393)-(180)(360)}{\sqrt{9(3720)-(180)^2} \sqrt{9(14746)-(360)^2}} \)
\(=\frac{66537-64800}{\sqrt{33480-32400} \times \sqrt{132714-129600}} \)
\(=\frac{1737}{\sqrt{1080 \times 3114}}=\frac{1737}{1833.88}=0.9472\)
7.
Solving the two regression equations we get mean values of X and Y
2X–Y = –1 ... (1)
3X–2Y = –7 ... (2)
Solving equation (1) and equation (2) We get X = 5 and Y = 11
Therefore the regression line passing through the means \(\bar { X } \) = 5 and \(\bar { Y } \) = 11
The regression equation of Y on X is 3X–2Y = –7
2Y = 3X + 7
Y = \(\frac{1}{2}\)(3X+7)
Y = \(\frac { 3 }{ 2 } X+\frac { 7 }{ 2 } \)
∴ byx = \(\frac{3}{2}\)(>1)
The regression equation of X on Y is
2X–Y = –1
2X = Y–1
X = \(\frac{1}{2}\)(Y-1)
X = \(\frac{1}{2}\)Y - \(\frac{1}{2}\)
∴ byx = \(\frac{1}{2}\)
The regression coefficients are positive
r = ±\(\sqrt { { b }_{ xy }.{ b }_{ yx } } =\pm \sqrt { \frac { 3 }{ 2 } \times \frac { 1 }{ 2 } } \)
= \(\sqrt { \frac { 3 }{ 2 } \times \frac { 1 }{ 2 } } \)
= \(\sqrt { \frac { 3 }{ 4 } } \)
= 0.866
∴ r = 0.866
8.
| Applicant | X | Y | Rx | Ry | d=Rx-Ry | d2 |
| A | 20 | 30 | 2 | 1 | 1 | 1 |
| B | 50 | 60 | 8 | 8 | 0 | 0 |
| C | 28 | 50 | 5 | 6 | -1 | 1 |
| D | 25 | 40 | 3 | 3 | 0 | 0 |
| E | 70 | 85 | 9 | 10 | -1 | 1 |
| F | 90 | 90 | 11 | 11 | 0 | 0 |
| G | 76 | 56 | 10 | 7 | 3 | 9 |
| H | 45 | 82 | 7 | 9 | -2 | 4 |
| I | 30 | 42 | 6 | 4 | 2 | 4 |
| J | 19 | 31 | 1 | 2 | -1 | 1 |
| K | 26 | 49 | 4 | 5 | -1 | 1 |
| \(\sum\)d2 = 22 |
\(\rho =1-\frac{6 \sum d^2}{n\left(n^2-1\right)} \)
\(=1-\frac{6(22)}{11(120)}=1-\frac{1}{10}=1-0.1=0.9\)
9.
(b)
Independent variable
10.
(a)
dependent variable
11.
(b)
-1 to +1
12.
(a)
Negative
13.
(a)
Income and expenditure
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