Quantitative Methods For Economic Analysis II Set 5

Bachelor of Arts in Economics (BA Economics),

Master of Arts in Economics (MA Economics)

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This set of Quantitative Methods for Economic Analysis 2 Multiple Choice Questions & Answers (MCQs) focuses on Quantitative Methods For Economic Analysis II Set 5

Q1 | If b1 and b2 are the regression coefficient of Y on X and that of X on Y respectivelyand r is the correlation coefficient between X and Y then:
  • 0
  • 0
  • 0
  • ℎ
Answer: ℎ
Q2 | The correlation coefficient between X and Y will have positive sign when
  • x is increasing, y is decreasing
  • both x and y are increasing
  • x is decreasing, y is increasing
  • there is no change in x and y
Answer: both x and y are increasing
Q3 | The correlation coefficient between X and Y is 0.6. Their covariance is 4.8 and thevariance of X is 4. Then the variance of Y is:
  • 2
  • 9
  • 4
  • 16
Answer: 16
Q4 | The value of the correlation coefficient lies between:
  • 0 and 1
  • -1 and +1
  • -30 and +3
  • none of these
Answer: -1 and +1
Q5 | If one of the regression coefficients is greater than 1, then the other must be:
  • greater than 1
  • equal to 1
  • less than 1
  • zero
Answer: less than 1
Q6 | The coefficient of correlation:
  • always positive
  • always negative
  • cannot be negative
  • can be both positive and negative
Answer: can be both positive and negative
Q7 | Relation between two variables is determined by
  • dispersion
  • mean
  • correlation
  • regression
Answer: correlation
Q8 | Maximum value of correlation is
  • 2
  • 1.5
  • 1
Answer: 1
Q9 | Minimum value of correlation is
  • -2
  • -1.5
  • -1
Answer: -1
Q10 | Coefficient of correlation measure
  • direction of the relation
  • degree of the relation
  • both (a) and (b)
  • none of the above
Answer: both (a) and (b)
Q11 | Range of the coefficient of correlation is
  • ±2
  • ±1
  • ±0.5
  • ±0.25
Answer: ±1
Q12 | As the value of X increases, if Y also increases, then coefficient of correlation willbe
  • positive
  • negative
  • zero
  • none of the above
Answer: positive
Q13 | As the value of X increases, if value of Y decreases, then coefficient of correlationwill be
  • positive
  • negative
  • zero
  • none of the above
Answer: negative
Q14 | In case coefficient of correlation is positive, the curve representing the relation willbe
  • upward sloping
  • downward sloping
  • vertical
  • horizontal
Answer: upward sloping
Q15 | Vertical curve represent the value of correlation coefficient to be
  • positive
  • negative
  • zero
  • all of the above
Answer: zero
Q16 | Horizontal curve represents the value of coefficient of correlation to be
  • positive
  • negative
  • zero
  • all of the above
Answer: zero
Q17 | In case, coefficient of correlation is negative, the curve representing the relation willbe
  • upward sloping
  • downward sloping
  • vertical
  • horizontal
Answer: downward sloping
Q18 | In case of simple correlation, the number of variables involved are
  • 1
  • 2
  • 3
  • 4
Answer: 2
Q19 | In case of multiple correlation, the number of variables involved are greater than
  • 1
  • 2
  • 3
  • 4
Answer: 2
Q20 | Scatter diagram is
  • mathematical method of finding out correlation
  • positional method of finding out correlation
  • graphic method of finding out correlation
  • none of the above
Answer: graphic method of finding out correlation
Q21 | When variations in the values of two variables have a constant ratio, there will be
  • linear correlation
  • zero correlation
  • non-linear correlation
  • none of the above
Answer: linear correlation
Q22 | Graph of variables having linear relation will be
  • curved
  • hyperbola
  • straight line
  • none of the above
Answer: straight line
Q23 | Graph of variables having non-linear relation will be
  • curved
  • hyperbola
  • straight line
  • none of the above
Answer: curved
Q24 | Karl Pearson’s coefficient of correlation method of measuring correlation is
  • graphic
  • mathematical
  • positional
  • none of the above
Answer: mathematical
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