Correlation and RegressionMCQMTP Dec 22 Series IIQuestion 3755 of 188
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If regression line of y\displaystyle y on x\displaystyle x is given by y=x+2\displaystyle y = x + 2 and Karl Pearson's coefficient of correlation is 0.5\displaystyle 0.5 then fracsigmay2sigmax2=\displaystyle \\frac{\\sigma_y^2}{\\sigma_x^2} =

Options

A3\displaystyle 3
B2\displaystyle 2
C4\displaystyle 4
DNone of these
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Correct Answer

Option c4\displaystyle 4

All Options:

  • A3\displaystyle 3
  • B2\displaystyle 2
  • C4\displaystyle 4
  • DNone of these

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Detailed Solution & Explanation

Given the regression line of y\displaystyle y on x\displaystyle x:\ny=x+2y = x + 2\nThe regression coefficient of y\displaystyle y on x\displaystyle x, denoted as byx\displaystyle b_{yx}, is the coefficient of x\displaystyle x in this equation. Therefore:\nbyx=1b_{yx} = 1\nWe are given Karl Pearson's coefficient of correlation:\nr=0.5r = 0.5\nThe relationship between the regression coefficient byx\displaystyle b_{yx}, correlation coefficient r\displaystyle r, and the standard deviations sigmax\displaystyle \\sigma_x and sigmay\displaystyle \\sigma_y is given by the formula:\nbyx=rtimesfracsigmaysigmaxb_{yx} = r \\times \\frac{\\sigma_y}{\\sigma_x}\nSubstitute the given values into the formula:\n1=0.5timesfracsigmaysigmax1 = 0.5 \\times \\frac{\\sigma_y}{\\sigma_x}\nSolving for the ratio of standard deviations:\nfracsigmaysigmax=frac10.5=2\\frac{\\sigma_y}{\\sigma_x} = \\frac{1}{0.5} = 2\nTo find the ratio of their variances fracsigmay2sigmax2\displaystyle \\frac{\\sigma_y^2}{\\sigma_x^2}, we square both sides:\nfracsigmay2sigmax2=(2)2=4\\frac{\\sigma_y^2}{\\sigma_x^2} = (2)^2 = 4\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

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