Correlation and RegressionMCQMTP Nov 21Question 3746 of 188
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The coefficients of correlation between two variables x\displaystyle x and y\displaystyle y is the simple ______ of two regression coefficients.

Options

AHarmonic Mean
BArithmetic Mean
CGeometric Mean
DNone of the above
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Correct Answer

Option cGeometric Mean

All Options:

  • AHarmonic Mean
  • BArithmetic Mean
  • CGeometric Mean
  • DNone of the above

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Detailed Solution & Explanation

The correlation coefficient (r\displaystyle r) and the two regression coefficients (byx\displaystyle b_{yx} and bxy\displaystyle b_{xy}) are mathematically related.\nSpecifically, the correlation coefficient is the geometric mean of the two regression coefficients:\nr=pmsqrtbyxcdotbxyr = \\pm \\sqrt{b_{yx} \\cdot b_{xy}}\n\nThe sign of r\displaystyle r is positive if both regression coefficients are positive, and negative if both are negative.\n\nTherefore, the correlation coefficient is the Geometric Mean of the two regression coefficients. (Note: The source file indicating Option D is a typo).\n\nHence, **Option C** 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

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