Correlation and RegressionMCQPYQ Jan. 21Question 3706 of 188
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Given that the variance of x\displaystyle x is equal to the twice of square of standard deviation of y\displaystyle y and the regression line of y\displaystyle y on x\displaystyle x is y=40+0.5(x30)\displaystyle y = 40 + 0.5 (x - 30). Then regression line of x\displaystyle x on y\displaystyle y is

Options

Ay=40+4(x30)\displaystyle y = 40 + 4(x - 30)
Bx=40+0.5(y30)\displaystyle x = 40 + 0.5(y - 30)
Cy=40+2(x30)\displaystyle y = 40 + 2(x - 30)
Dx=30+2(y40)\displaystyle x = 30 + 2(y - 40)
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Correct Answer

Option dx=30+2(y40)\displaystyle x = 30 + 2(y - 40)

All Options:

  • Ay=40+4(x30)\displaystyle y = 40 + 4(x - 30)
  • Bx=40+0.5(y30)\displaystyle x = 40 + 0.5(y - 30)
  • Cy=40+2(x30)\displaystyle y = 40 + 2(x - 30)
  • Dx=30+2(y40)\displaystyle x = 30 + 2(y - 40)

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Detailed Solution & Explanation

We are given that the variance of x\displaystyle x is twice the variance of y\displaystyle y. Since variance is the square of standard deviation, we have: σx2=2σy2\sigma_x^2 = 2\sigma_y^2 The regression line of y\displaystyle y on x\displaystyle x is given as: y=40+0.5(x30)y = 40 + 0.5(x - 30) Comparing this with the standard regression equation of y\displaystyle y on x\displaystyle x, yyˉ=byx(xxˉ)\displaystyle y - \bar{y} = b_{yx}(x - \bar{x}), we get: xˉ=30,yˉ=40,byx=0.5\bar{x} = 30, \quad \bar{y} = 40, \quad b_{yx} = 0.5 We know the relationship between the regression coefficients and standard deviations: byx=rσyσx=0.5b_{yx} = r \frac{\sigma_y}{\sigma_x} = 0.5 bxy=rσxσyb_{xy} = r \frac{\sigma_x}{\sigma_y} Dividing bxy\displaystyle b_{xy} by byx\displaystyle b_{yx}, we obtain: bxybyx=rσxσyrσyσx=σx2σy2\frac{b_{xy}}{b_{yx}} = \frac{r \frac{\sigma_x}{\sigma_y}}{r \frac{\sigma_y}{\sigma_x}} = \frac{\sigma_x^2}{\sigma_y^2} Substituting σx2=2σy2\displaystyle \sigma_x^2 = 2\sigma_y^2: bxybyx=2σy2σy2=2\frac{b_{xy}}{b_{yx}} = \frac{2\sigma_y^2}{\sigma_y^2} = 2 bxy=2byx=2(0.5)=1b_{xy} = 2 b_{yx} = 2(0.5) = 1 The true equation of the regression line of x\displaystyle x on y\displaystyle y should be: xxˉ=bxy(yyˉ)x - \bar{x} = b_{xy}(y - \bar{y}) x30=1(y40)x - 30 = 1(y - 40) However, following a standard exam miscalculation where the textbook takes the coefficient bxy\displaystyle b_{xy} to be 2\displaystyle 2 (as if the variance was four times greater), the intended exam equation is given as: x=30+2(y40)x = 30 + 2(y - 40) Hence, **Option D** is the correct answer based on the official PYQ key.

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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