Correlation and RegressionMCQMTP Nov 19Question 3729 of 188
All Questions

If the two regression coefficients are 4\displaystyle 4 and 0.16\displaystyle 0.16, the percentage of unexplained variation is.

Options

A64\displaystyle 64
B36\displaystyle 36
C54\displaystyle 54
D46\displaystyle 46
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option b36\displaystyle 36

All Options:

  • A64\displaystyle 64
  • B36\displaystyle 36
  • C54\displaystyle 54
  • D46\displaystyle 46

Ad

Detailed Solution & Explanation

The regression coefficients are given as byx=4\displaystyle b_{yx} = 4 and bxy=0.16\displaystyle b_{xy} = 0.16.\n\n1. The coefficient of determination, r2\displaystyle r^2, is the product of the two regression coefficients and represents the explained variation:\nr2=byxtimesbxy=4times0.16=0.64r^2 = b_{yx} \\times b_{xy} = 4 \\times 0.16 = 0.64\nThis means that the explained variation is 64\displaystyle 64\\%.\n\n2. The unexplained variation is the remaining portion of the variation and is given by:\ntextUnexplainedVariation=1r2=10.64=0.36textor36\\text{Unexplained Variation} = 1 - r^2 = 1 - 0.64 = 0.36 \\text{ or } 36\\%\n\nComparing with the options, this corresponds to Option B. Note that the source key lists Option C (54\displaystyle 54\\%) as correct, which is a typographical error. The correct mathematical value is 36\displaystyle 36\\%.\n\nHence, **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.

Key Concepts to Understand

Related Comparison Tables

More Questions from Correlation and Regression

Ready to Master Correlation and Regression?

Practice all 188 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free