Correlation and RegressionMCQMTP Dec 2023 Series IQuestion 3759 of 188
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The equations of the two lines of regression are 4x+3y+7=0\displaystyle 4x + 3y + 7 = 0 and 3x+4y+8=0\displaystyle 3x + 4y + 8 = 0. Find the correlation coefficient between x\displaystyle x and y\displaystyle y.

Options

A0.75\displaystyle -0.75
B1.25\displaystyle 1.25
C0.92\displaystyle -0.92
D0.25\displaystyle 0.25
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Correct Answer

Option a0.75\displaystyle -0.75

All Options:

  • A0.75\displaystyle -0.75
  • B1.25\displaystyle 1.25
  • C0.92\displaystyle -0.92
  • D0.25\displaystyle 0.25

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Detailed Solution & Explanation

We are given the two regression equations:\n1. 4x+3y+7=0\displaystyle 4x + 3y + 7 = 0\n2. 3x+4y+8=0\displaystyle 3x + 4y + 8 = 0\n\nLet us assume equation (1) is the regression line of y\displaystyle y on x\displaystyle x and equation (2) is the regression line of x\displaystyle x on y\displaystyle y:\nFrom (1): 3y=4x7impliesy=frac43xfrac73impliesbyx=frac43approx1.33\displaystyle 3y = -4x - 7 \\implies y = -\\frac{4}{3}x - \\frac{7}{3} \\implies b_{yx} = -\\frac{4}{3} \\approx -1.33\nFrom (2): 3x=4y8impliesx=frac43yfrac83impliesbxy=frac43approx1.33\displaystyle 3x = -4y - 8 \\implies x = -\\frac{4}{3}y - \\frac{8}{3} \\implies b_{xy} = -\\frac{4}{3} \\approx -1.33\n\nCalculating the coefficient of determination r2\displaystyle r^2:\nr2=byxtimesbxy=left(frac43right)timesleft(frac43right)=frac169approx1.78r^2 = b_{yx} \\times b_{xy} = \\left(-\\frac{4}{3}\\right) \\times \\left(-\\frac{4}{3}\\right) = \\frac{16}{9} \\approx 1.78\nSince r2\displaystyle r^2 must lie in the range [0,1]\displaystyle [0, 1], this assumption is invalid. Thus, we reverse our assumption.\n\nLet equation (2) be the regression line of y\displaystyle y on x\displaystyle x and equation (1) be the regression line of x\displaystyle x on y\displaystyle y:\nFrom (2): 4y=3x8impliesy=0.75x2impliesbyx=0.75\displaystyle 4y = -3x - 8 \\implies y = -0.75x - 2 \\implies b_{yx} = -0.75\nFrom (1): 4x=3y7impliesx=0.75y1.75impliesbxy=0.75\displaystyle 4x = -3y - 7 \\implies x = -0.75y - 1.75 \\implies b_{xy} = -0.75\n\nNow, calculating r2\displaystyle r^2:\nr2=byxtimesbxy=(0.75)times(0.75)=0.5625r^2 = b_{yx} \\times b_{xy} = (-0.75) \\times (-0.75) = 0.5625\nSince 0ler2le1\displaystyle 0 \\le r^2 \\le 1, this is a valid assumption. The correlation coefficient r\displaystyle r must have the same sign as the regression coefficients, which is negative:\nr=sqrtr2=sqrt0.5625=0.75r = -\\sqrt{r^2} = -\\sqrt{0.5625} = -0.75\n\nNote: The correct option in the source database is listed as Option B (1.25), which is impossible because correlation coefficients must lie between 1\displaystyle -1 and 1\displaystyle 1. The mathematically correct option is Option A (0.75\displaystyle -0.75).\n\nHence, **Option A** 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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