Correlation and RegressionPYQ Jan 26Question 4544 of 188
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If byx=1.6\displaystyle b_{yx} = 1.6 and bxy=0.4\displaystyle b_{xy} = 0.4, then rxy\displaystyle r_{xy} will be:

Options

A0.4
B0.8
C0.64
D-0.8
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Correct Answer

Option b0.8

All Options:

  • A0.4
  • B0.8
  • C0.64
  • D-0.8

Detailed Solution & Explanation

The relationship between the correlation coefficient (rxy\displaystyle r_{xy}) and the regression coefficients (byx\displaystyle b_{yx} and bxy\displaystyle b_{xy}) is given by:
rxy2=byx×bxyr_{xy}^2 = b_{yx} \times b_{xy}
Taking the square root on both sides:
rxy=±byx×bxyr_{xy} = \pm \sqrt{b_{yx} \times b_{xy}}

Given:
- byx=1.6\displaystyle b_{yx} = 1.6
- bxy=0.4\displaystyle b_{xy} = 0.4

Substitute these values into the formula:
rxy=±1.6×0.4r_{xy} = \pm \sqrt{1.6 \times 0.4}
rxy=±0.64r_{xy} = \pm \sqrt{0.64}
rxy=±0.8r_{xy} = \pm 0.8

Since both regression coefficients byx\displaystyle b_{yx} and bxy\displaystyle b_{xy} are positive, the correlation coefficient rxy\displaystyle r_{xy} must also be positive. Therefore:
rxy=0.8r_{xy} = 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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