Mathematical Economics-Online Practice Exam 1

# Question

1. Match List I (r value) with List II (Interpretation) and select the correct answer using the code givenn below the Lists-

 List I (r value) List II (Interpretation) a. 0.26 i.  High negative relation b. -0.35 ii. Low positive relation c. -0-89 iii. High positive relation d. 0.98 iv. Low negative relation

a.ii, b.iv, c.i, d.iii

a.ii, b.iii, c.i, d.iv

a.iv, b.ii, c.i, d.iii

a.iii, b.iv, c.ii, d.i

# Question

2. Which of the following formulae is correct for computing correlation coefficient?

# Question

3. Which of the following is/are not correct?

Interchanges of all x and y values will change the sign of correlation coefficient

r is a pure number having no units

The coefficient of correlation r lies between – 1 and + 1

The value of ‘r’ does not change if all the values of either variable are counted to a different scale

# Question

4. For comparing yearly changes in price level, the suitable index to be used is

FBI with average price as current

FBI with average price as base

FBI

CBI

# Question

5. The weights used in Laspeyre’s price index are denoted as

P0

q0

P1

q1

# Question

6. The weights used is Laspeyre’s quantity index are denoted as

q0

q1

P1

P0

# Question

7. The weights used in Paasche’s price index are denoted as

P1

P0

q0

q1

# Question

8. The weights used in Paasche’s quantity index are denoted as

q1

q0

P1

P0

# Question

9. If the two regression lines are perpendicular to each other, then

r = 0

r = -1

r = +1

r ≥ 1

# Question

10. If the regression lines are identical, then-

r = 0

r = +1

r = -1

Either r = +1 or r = -1

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