Mathematical Economics-Online Practice Exam 8

Test

# Question

1. The coefficient of correlation-

has no limit

is more than -1

is less than 1

None of these

# Question

2. If the sum of the product of deviations of x and y series from their means is zero, the correlation coefficient will be-

1

0

-1

0.9

# Question

3. Karl Pearson’s coefficient of correlation measures-

linear correlation

non-linear correlation

Both linear and non-linear correlation

None of the above

# Question

4. Maximum positive value of coefficient of correlation is

.9

0.5

1.00

There is no maximum limit

# Question

5. The minimum value of coefficient of correlation is-

1.0

0

-1.00

There is no minimum limit

# Question

6. Correlation between price and demand is

Positive

Negative

any of the above

Both positive and negative

# Question

7. Correlation between price and supply is-

Positive

Negative

Positive and Negative

Positive or Negative

# Question

8. If the coefficient of correlation between x and y is 0.75 then the relationship can be termed as-

positive and perfect

positive but not perfect

negative and perfect

negative but not perfect

# Question

9. If the coefficient of correlation between two variables x and y is -1.00, then the relationship can be termed as

positive and perfect

positive but not perfect

negative and perfect

negative but not perfect

# Question

10. Which one of the following statements is true ?

Correlation coefficient is expressed in the units of original data

Correlation coefficient is an absolute measure of relationship between the two variables

Coefficient of correlation is a relative measure of association between two variables

Correlation coefficient establishes cause and effect relationship between the two variables

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