Correlation and RegressionMCQMTP June 24 Series IIQuestion 3688 of 188
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The coefficient of rank correlation of marks obtained by 10\displaystyle 10 students in English and Economics was found to be 0.5\displaystyle 0.5. It was later discovered that the difference in ranks in the two subjects obtained by one student was wrongly taken as 3\displaystyle 3 instead of 7\displaystyle 7. Find correct coefficient of rank correlation.

Options

A0.514\displaystyle 0.514
B0.364\displaystyle 0.364
C0.15\displaystyle 0.15
D0.260\displaystyle 0.260
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Correct Answer

Option d0.260\displaystyle 0.260

All Options:

  • A0.514\displaystyle 0.514
  • B0.364\displaystyle 0.364
  • C0.15\displaystyle 0.15
  • D0.260\displaystyle 0.260

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Detailed Solution & Explanation

**Correcting the rank correlation coefficient:** Given: - n=10\displaystyle n = 10 - Incorrect rs=0.5\displaystyle r_s = 0.5 - Wrong d=3\displaystyle d = 3, Correct d=7\displaystyle d = 7 **Step 1: Find incorrect sumd2\displaystyle \\sum d^2** 0.5=1frac6sumdtextwrong210(1001)=1frac6sumdtextwrong29900.5 = 1 - \\frac{6\\sum d^2_{\\text{wrong}}}{10(100-1)} = 1 - \\frac{6\\sum d^2_{\\text{wrong}}}{990} frac6sumdtextwrong2990=0.5Rightarrowsumdtextwrong2=frac0.5times9906=frac4956=82.5\\frac{6\\sum d^2_{\\text{wrong}}}{990} = 0.5 \\Rightarrow \\sum d^2_{\\text{wrong}} = \\frac{0.5 \\times 990}{6} = \\frac{495}{6} = 82.5 **Step 2: Correct sumd2\displaystyle \\sum d^2** The wrong d=3\displaystyle d = 3 is replaced by correct d=7\displaystyle d = 7: sumdtextcorrect2=sumdtextwrong232+72=82.59+49=122.5\\sum d^2_{\\text{correct}} = \\sum d^2_{\\text{wrong}} - 3^2 + 7^2 = 82.5 - 9 + 49 = 122.5 **Step 3: Calculate correct rs\displaystyle r_s** rs=1frac6times122.5990=1frac735990=10.7424=0.2576approx0.26r_s = 1 - \\frac{6 \\times 122.5}{990} = 1 - \\frac{735}{990} = 1 - 0.7424 = 0.2576 \\approx 0.26 Hence, **Option D** is the correct answer.

About This Chapter: Correlation and Regression

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Correlation Coefficient, Regression Equations

This chapter covers Correlation Coefficient, Regression Equations and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

Key Concepts to Understand

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