Question 1

The Correlation coefficient between two variables is the………………..of their regression coefficients.
A)Arithmetic mean
B)Geometric mean
C)Harmonic mean
D)None of these

Accepted Answer

The correlation coefficient between two variables is the geometric mean of their regression coefficients. This is because the correlation coefficient (r) is related to the regression coefficients (b1 and b2) through the formula r = sqrt(b1 * b2), which is the definition of the geometric mean of b1 and b2.

Question 2

The percent of the total variation of the dependent variable Y explained by the set of independent variables X is measured by:
A)Coefficient of Correlation
B)Coefficient of Skewness
C)Coefficient of Determination
D)Standard error

Accepted Answer

The coefficient of determination, often denoted as R^2, measures the proportion of the variance in the dependent variable that is predictable from the independent variables, thus explaining the percent of total variation of Y explained by X.

Question 3

A 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

Accepted Answer

A scatter diagram can be used to identify both linear and curvilinear relationships between two variables by visually displaying data points on a graph.

Question 4

The maximum value of the Rank Correlation coefficient is
A)+1
B)-1
C)0
D)None of these

Accepted Answer

The Rank Correlation coefficient, also known as Spearman's rank correlation coefficient, measures the strength and direction of association between two ranked variables. Its values range from -1 to +1, where +1 indicates a perfect positive rank correlation.

Question 5

What is the purpose of a simple linear regression?
A)To predict scores on a dependent variable from scores on a single independent variable
B)To predict scores on an independent variable from scores on multiple dependent variables
C)To predict scores on a dependent variable from scores on multiple independent variables
D)None of Above

Accepted Answer

Simple linear regression is used to predict the value of a dependent variable based on the value of a single independent variable.

Question 6

If r is the simple correlation coefficient, the quantity r2 is known as ...................
A)Coefficient of determination
B)Coefficient of non-determination
C)Coefficient of alienation
D)None of these

Accepted Answer

The quantity r^2, where r is the simple correlation coefficient, is known as the coefficient of determination. It represents the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Question 7

Asimpleindexnumberis anumberthatmeasures arelativechangein ?
A)group of variable with respect to a base
B)single variable with respect to a base
C)Both A &B
D)None of theabove

Accepted Answer

A simple index number measures a relative change in a single variable with respect to a base period or value.

Question 8

Which index number is called as ideal index number.
A)Lasperys
B)Paasches
C)Fisher
D)None of Above

Accepted Answer

Fisher's index number is considered the ideal index number because it satisfies the time reversal test and the factor reversal test, making it a more accurate and reliable measure compared to other index numbers.

Question 9

Secular trend can be measured by:
A)Two methods
B)Three methods
C)Four methods
D)Five methods

Accepted Answer

Secular trend can be measured by four methods: graphical method, semi-average method, moving average method, and least squares method.

Question 10

Fishers price index number is the -------
A)A.M. of Lasperys and Paasches.
B)G.M. of Lasperys and Paasches.
C)Difference between Lasperys and Paasches
D)None of the above.

Accepted Answer

Fisher's price index number is the geometric mean (G.M.) of Laspeyres' and Paasche's price index numbers.

Question 11

Relative Method is further divided into how many types?
A)One
B)two
C)None of the above
D)All of the Above.

Accepted Answer

The Relative Method is divided into two main types: the Direct Relative Method and the Indirect Relative Method. These methods are used in various fields, including statistics and research, to compare different sets of data or to measure changes over time.

Question 12

In Price Index Numbers prices can either be ?
A)Retail
B)wholesale
C)Both I and II
D)None of the above.

Accepted Answer

Price index numbers can include both retail and wholesale prices, as they are measures of average price changes over time and can be applied to various levels of the market.

Question 13

While computing a weighted index, the current period quantities are used in the:
A)Laspeyre's method
B)Paasche's method
C)Marshall Edgeworth method
D)Fisher's ideal method

Accepted Answer

In Paasche's method, the current period quantities are used as weights to compute the index.

Question 14

………….is a point of reference in comparing various data describing individual behaviour.
A)Sample
B)Base period
C)Estimation
D)None

Accepted Answer

A base period serves as a point of reference or benchmark when comparing various data to understand or analyze individual behavior over time.

Question 15

Wheat crops badly damaged on account of rains is:
A)Cyclical movement
B)Random movement
C)Secular trend
D)Seasonal movement

Accepted Answer

Random movement in data or trends refers to unpredictable changes that do not follow a pattern, often caused by unforeseen or uncontrollable factors. The damage to wheat crops due to rains is an example of such an unpredictable event, which does not follow a cyclical, seasonal, or long-term trend pattern.

Question 16

A complete business cycle consists of a period of:
A)Prosperity
B)Recession
C)Both prosperity and recession
D)none of the above

Accepted Answer

A complete business cycle includes periods of both prosperity (expansion) and recession (contraction), reflecting the natural fluctuations in economic activity over time.

Question 17

Which of the following can't be a component for a time series plot?
A)Seasonality
B)Trend
C)Cyclical
D)Noise
E)None of the above

Accepted Answer

All the options listed (Seasonality, Trend, Cyclical, and Noise) are components that can be part of a time series plot. Time series data can exhibit seasonal patterns, trends over time, cyclical patterns that are not of fixed frequency, and random noise.

Question 18

The additive and multiplicative time series models are:
A)Y = T + S + C + I and Y = TSCI respectively
B)Y = TSCI and Y = T + S + C + I
C)none of these
D)all

Accepted Answer

The additive time series model is Y = T + S + C + I, where T is the trend, S is the seasonality, C is the cyclical component, and I is the irregular component. The multiplicative time series model is Y = TSCI, where T is the trend, S is the seasonality, C is the cyclical component, and I is the irregular component.

Question 19

Value of b in the trend line Y = a + bX is:
A)Always positive
B)Always negative
C)Both positive or negative
D)None of these

Accepted Answer

The value of b in the trend line equation Y = a + bX, which represents the slope of the line, can be either positive or negative depending on the direction of the relationship between X and Y. If Y increases as X increases, b is positive; if Y decreases as X increases, b is negative.

Question 20

In a straight line equation Y = a + bX; a and b are respectively:
A)X-intercept and slope
B)Y intercept and slope
C)can't determined
D)all

Accepted Answer

In the equation Y = a + bX, 'a' represents the Y-intercept, which is the point where the line crosses the Y-axis, and 'b' represents the slope, which indicates the steepness of the line and the direction in which it tilts.

Quiz 9: Correlation Coefficient, Index Numbers, and Time Series

The Correlation coefficient between two variables is the………………..of their regression coefficients.

The percent of the total variation of the dependent variable Y explained by the set of independent variables X is measured by:

A Scatter diagram is considered for measuring

The maximum value of the Rank Correlation coefficient is

What is the purpose of a simple linear regression?

If r is the simple correlation coefficient, the quantity r2 is known as ...................

Asimpleindexnumberis anumberthatmeasures arelativechangein ?

Which index number is called as ideal index number.

Secular trend can be measured by:

Fishers price index number is the -------

Relative Method is further divided into how many types?

In Price Index Numbers prices can either be ?

While computing a weighted index, the current period quantities are used in the:

………….is a point of reference in comparing various data describing individual behaviour.

Wheat crops badly damaged on account of rains is:

A complete business cycle consists of a period of:

Which of the following can't be a component for a time series plot?

The additive and multiplicative time series models are:

Value of b in the trend line Y = a + bX is:

In a straight line equation Y = a + bX; a and b are respectively: