Correlation and RegressionMCQPYQ July 21Question 3710 of 188
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If byx=1.6\displaystyle b_{yx} = -1.6, bxy=0.4\displaystyle b_{xy} = -0.4 then rxy\displaystyle r_{xy} will be:

Options

A0.4
B-0.8
C0.64
D0.8
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Correct Answer

Option b-0.8

All Options:

  • A0.4
  • B-0.8
  • C0.64
  • D0.8

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Detailed Solution & Explanation

We are given the regression coefficients: byx=1.6andbxy=0.4b_{yx} = -1.6 \quad \text{and} \quad b_{xy} = -0.4 The correlation coefficient rxy\displaystyle r_{xy} is related to the regression coefficients by the formula: rxy=±byx×bxyr_{xy} = \pm \sqrt{b_{yx} \times b_{xy}} A fundamental property of regression coefficients is that byx\displaystyle b_{yx}, bxy\displaystyle b_{xy}, and rxy\displaystyle r_{xy} must all have the same sign. Since both byx\displaystyle b_{yx} and bxy\displaystyle b_{xy} are negative, rxy\displaystyle r_{xy} must also be negative: rxy=(1.6)×(0.4)r_{xy} = -\sqrt{(-1.6) \times (-0.4)} rxy=0.64=0.8r_{xy} = -\sqrt{0.64} = -0.8 Hence, **Option B** 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.

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