Regression & Correlation

1. An r value of 0.8 indicates:

(a) no linear vorrelation at all;
(b) correlation, but not linear;
(c) some linear correlation;
(d) a curvilinear association between two variable.
2. The measure of how well the regression line fits the data, the quantity to be computed is the:
(a) coefficient of determination;
(b) slope of the regression line;
(c) mean square error;
(d) standard error of the regression coefficient.
3. The correlation coefficient r, can take any value within what range?
(a) r1 (b) 0r1
(c) r  −1 (d) −1  r  1
4. If two variables have a correlation coefficient 0.30, then what percentage of one variable is
accounted for, by the other variable?
(a) 90% (b) 70% (c) 30% (d) 9%
5. When there is no correlation between two variables, then r  ?
(a) +1 (b) −1
(c) 0 (d) a very small negative number
6. In regression analysis, b  −3 , a  24. Predict the value of dependent variable if the value
of independent variable is 5.
(a) 117 (b) 19⁄3 (c) 9 (d) not possible
7. A researcher wants to develop a model in order to predict the GPA of ICMA students. She
collected the following data:

Student GPA Hours studied

A 4.0 40
B 3.0 25
C 2.0 10
D 1.0 05
E 0.0 01

What proportion of variance is explained by the regression line?

(a) 30.8% (b) 70.5% (c) 92.5% (d) 96.2%

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8. If the rank correlation coefficient between marks in Accounting and Mathematics for a group of
students is 0.6 and the sum of the square of the difference in ranks is 66, then the number of
students in the group is:
(a) 8 (b) 9 (c) 10 (d) 11
9. While computing the rank correlation coefficient, between profit and investment for the last six
years of company the difference in rank for a year was taken 3 instead of 4. Calculate the correct
value of rank correlation coefficient if it is known that the original value of rank correlation
coefficient was 0.4.
(a) 0.2 (b) 0.4 (c) 0.6 (d) 0.8
10. If there are two variables x and y, then the number of regression equation could be:
(a) 1 (b) 2 (c) 3 (d) any number
11. Generally, blood pressure depends on age, we need to calculate:
(a) the regression equation of age on blood pressure;
(b) the regression equation of blood pressure on age;
(c) both (a) and (b)
(d) either (a) or (b)
12. The method used for deriving the regression equations is known as:
(a) deviation (b) product moment
(c) Pearson (d) least square
13. The difference between observed value and estimated value in regression analysis, is known as:
(a) error (b) deviation
(c) residual (d) all of above
14. Which of the following measures the strength and direction of the linear relationship between the
dependent and the independent variable?
(a) simple correlation coefficient (b) distance value
(c) y intercept (d) normal plot
15. In a sample of 100 observations, the sample correlation between two variables, y and x, was
found to be −0.72. Based on this data, the least squares regression line was computed to be
= 7 − 3.4 . This means that the percentage variation in y explained by a linear
relationship with x is:
(a) − 0.72 (b) 49% (c) 11.56% (d) 51.8%

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16. In a simple linear regression, the least squares regression line is:
(a) the line which makes the sample correlation as close to +1 or –1 as possible;
(b) the line which best splits the data in half, with half of the data points lying above the
regression line and half of the data points lying below the regression line;
(c) the line which minimizes the sum of the squared residuals;
(d) the line which minimizes the number of points that do not pass through the line.
17. In regression analysis, what does the y intercept represent?
(a) the predicted value of y
(b) the variation around the line of regression
(c) the predicted value of y when x  0
(d) the estimated change in average y per unit change in x
18. What does it mean to say there is error in our regression?
(a) we calculated it wrong.
(b) there were data entry errors.
(c) the data points all fall on a straight line.
(d) we cannot predict y perfectly.
19. If the regression lines y on x and x on y are 2 + 3 = −1 and 5 + 6 = −1 respectively, then
̅ and are:
(a) x  , y    (b) x    , y 

(c) x   , y    (d) x  , y 

20. For the two regression equations, 3 + = 13 and 2 + 5 = 20; then which one is the
regression equation of y on x?
(a) Ist equation (b) IInd equation
(c) both equation (d) none
21. If the equations = −2 + 3 and 8 = − + 3 represents regression lines of y on x and x on y
respectively, then the value of r is:

(a) 1⁄2 (b) −1⁄2 (c) (d) −1⁄4

√

22. For the two regression equations, 2 − = 10 and 3 + 4 = 15; then which one is the
regression equation of x on y?
(a) Ist equation (b) IInd equation
(c) both equation (d) not sure

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23. Following is a scatter plot of y versus x. What is the proportion of variation in y explained by x?
[ Which choice is most likely to be the approximate value of r2 ? ]

(a) − 99.5% (b) +2.0% (c) − 50.0% (d) 99.5%

24. If data set A has a correlation coefficient of r  − 0.991, and data set B has a correlation
coefficient of r  0.991, which correlation is correct?
(a) data set A and data set B have the same strength in linear correlation.
(b) data set A has a stronger linear correlation than data set B.
(c) data set A has a weaker linear correlation than data set B.
(d) not sure.
25-26.
In constructing the regression model, the following pair of points has been used:
(–2,0) , (–1,0) , (0,1) , (1,1), and (2,3).
25. What is the slope of the line?
(a) 0.0 (b) 0.5 (c) 0.6 (d) 0.7
26. What is the y intercept?
(a) 0.0 (b) 0.7 (c) 1.0 (d) 1.5
27-32.
A sales manager for an advertising agency believes there is a relationship between the number of
contacts⁄calls and the amount of the sales. To verify this belief, the following data was collected:

Salesperson A B C D E F G H I J
No. of contacts 14 12 20 16 46 23 48 50 55 50
Sales (Rs ‘000’) 24 14 28 30 80 30 90 85 120 110

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27. What is the y intercept of the linear equation?
(a) –12.201 (b) 2.1946 (c) –2.1946 (d) 12.201
28. What is the slope of the linear equation?
(a) –12.201 (b) 12.201 (c) 2.1946 (d) –2.1946
29. What is the value of the coefficient of correlation?
(a) 0.6317 (b) 0.9754 (c) 0.9513 (d) 9.3104
30. What is the value of the coefficient of determination?
(a) 9.3104 (b) 0.9754 (c) 0.6319 (d) 0.9513
31. What is the regression equation?
(a) ŷ  2.1946 – 12.201x (b) ŷ  –12.201 + 2.1946x

(c) ŷ  12.201 + 2.1946x (d) ŷ  2.1946 + 12.201x

32. Estimate the sales for a salesperson that has made 40 calls.
(a) Rs 60,785 (b) Rs 67,500
(c) Rs 75,583 (d) Rs 80,000
33. If the coefficient of determination is 0.49, then the coefficient of correlation can be:
(a) − 0.201 (b) 0.7 (c) 0.2401 (d) 49%
34. A computer operator while calculating the correlation coefficient from 50 pair of observations
obtained the following results: ∑ = 75 , ∑ = 80 , ∑ = 130 , ∑ = 140 , ∑ = 120.
It was, however, later discover that two pairs (6, 4) and (3, 5) were taken wrongly, while the
correct values were (4, 6) and (7, 1). Find the correct value of correlation coefficient.
(a) − 0.383 (b) 0.552 (c) 0.778 (d) −0.829
35. What information is provided by the coefficient of determination?
(a) whether r has any significance
(b) the coefficient of correlation is larger than one
(c) the proportion of total variation in y that is explained by x
(d) whether total variation should be partitioned
36. The line described by the regression equation attempts to:
(a) pass through as many points as possible.
(b) pass through as few points as possible.
(c) minimize the number of points it touches.
(d) minimize the squared distance from the points.

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37. Find Pearson's r, given the following sums for the data from 20 subjects: Σ x  110 , Σ x2  770,
Σ y  155 , Σ y2  1393, Σ xy  881.
(a) 0.16 (b) 0.34 (c) 0.57 (d) − 0.07
38. If the predicted value for y is always the same as the observed value of x (the variable used to
make the predictions), the slope of the regression line will be:
(a) zero (b) +1.0
(c) infinity (d) it depends on the standard deviations of x and y
39. A large positive slope means that:
(a) the correlation will be large and positive
(b) the y intercept will be large and positive
(c) the value of y will increase by (at least) several units when the x value increases by one
unit
(d) all of the above are true
40. If the slope for predicting y from x, is 16 and the y intercept is 400, estimate y when x  20?
(a) 320 (b) 420 (c) 560 (d) 720
41. The correlation between the speed of car and the distance covered by it is:
(a) positive (b) zero
(c) negative (d) infinite
42. If there is a perfect disagreement between the marks in History and Statistics, then the value
of rank correlation coefficient will be:
(a) zero (b) 1 only
(c) − 1 only (d) any value
43. In calculating the correlation coefficient, following results are obtained:
∑ = 120 , ∑ = 90 , ∑ = 600 , ∑ = 300 , ∑ = 414 , = 30.
Later on it was found that the two pairs (12, 11) and (6, 8) was wrongly taken. The correct
observations being (10, 9) and (8, 10). The correct value of correlation coefficient will be:
(a) 0.654 (b) 0.773 (c) 0.846 (d) 0.953
44. Find the correlation coefficient from the following data:
∑ = 56 , ∑ = 40 , ∑ = 524 , ∑ = 256 , ∑ = 364 , =8
(a) 0.664 (b) 0.768 (c) 0.812 (d) 0.977
45. The maximum value of correlation coefficient will be:
(a) −1 (b) 0 (c) 1 (d) ∞

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46. In a data set, if two variables x and y have a strong negative correlation, then a scatter plot of their
values would fit loosely around:
(a) a straight line going down to the right
(b) a straight line going up to the right
(c) a horizontal line
(d) a line with undefined slope.
47. The least squares regression line is:
(a) the line which makes the sample correlation as close to +1 or –1 as possible
(b) the line which best splits the data in half, with half of the data points lying above the
regression line and half of the data points lying below the regression line
(c) the line which minimizes the sum of the squared residuals
(d) the line which minimizes the number of points that do not pass through the line
48. In least square regression line, what does the slope represent?
(a) the predicted value of y when x = 0
(b) the estimated change in average y per unit change in x
(c) the predicted value of y
(d) the variation around the line of regression
49. Which one of the following is NOT appropriate for studying the relationship between two
quantitative variables?
(a) scatterplot (b) bar chart
(c) correlation (d) regression
50. In the simple linear regression equation, the symbol represents the:
(a) average or predicted response (b) estimated intercept
(c) estimated slope (d) explanatory variable
51. In the simple linear regression equation, the variable x represents the:
(a) estimated or predicted response (b) estimated intercept
(c) estimated slope (d) explanatory variable

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