MCQ Class 11 Economics Chapter 6 Correlation CBSE Board Advertisement Statistics for Economics 1. What does correlation analysis study?Relationship between two variablesRelationship between three countriesChanges in population onlyChanges in national income onlyQuestion 1 of 202. Which of the following is an example of a positive relationship?Price and demandIncome and consumptionPrice and quantity demandedStudy time and chances of failureQuestion 2 of 203. What happens to the price of tomatoes when their supply increases in the local market?The price increasesThe price remains unchangedThe price decreasesThe price becomes zeroQuestion 3 of 204. Correlation measures which two aspects of a relationship?Cost and productionIncome and expenditureDemand and supplyDirection and intensityQuestion 4 of 205. Which of the following is an example of negative correlation?Price of apples and their demandIncome and consumptionTemperature and ice-cream salesEducation and agricultural yieldQuestion 5 of 206. When do two variables have positive correlation?When they move in opposite directionsWhen they move in the same directionWhen neither variable changesWhen their values are always equalQuestion 6 of 207. Which technique presents the relationship between two variables visually?Arithmetic meanStandard deviationScatter diagramMedianQuestion 7 of 208. Who developed the coefficient of correlation commonly known as Karl Pearson's coefficient?C.E.SpearmanAlfred MarshallAdam SmithKarl PearsonQuestion 8 of 209. What does a scatter diagram show?The visual nature of the relationship between two variablesOnly the average value of variablesOnly the total value of observationsThe percentage of population growthQuestion 9 of 2010. When all scatter points lie exactly on a straight line, the correlation is called:Zero correlationPerfect correlationWeak correlationNon-linear correlationQuestion 10 of 2011. Which correlation exists when the scatter points are widely dispersed around a line?Perfect positive correlationPerfect negative correlationLow correlationUnity correlationQuestion 11 of 2012. When is a relationship between two variables called linear?When it forms a circleWhen it forms a curveWhen it has no patternWhen it can be represented by a straight lineQuestion 12 of 2013. Which coefficient measures the linear association between ranks?Spearman's rank correlation coefficientKarl Pearson's coefficientCovarianceStandard deviationQuestion 13 of 2014. What is the range of Karl Pearson's coefficient of correlation?0 to 1–1 to +1–2 to +20 to infinityQuestion 14 of 2015. What does a negative value of the correlation coefficient indicate?A perfect relationshipNo relationshipAn inverse relationshipA positive relationshipQuestion 15 of 2016. What does a positive value of the correlation coefficient indicate?Variables move in opposite directionsVariables are unrelatedVariables remain constantVariables move in the same directionQuestion 16 of 2017. What does a correlation coefficient equal to zero indicate?No linear relationshipPerfect positive relationshipPerfect negative relationshipStrong positive relationshipQuestion 17 of 2018. Which of the following is a property of Karl Pearson's correlation coefficient?It has the unit of measurement of XIt has no unitIt has the unit of measurement of YIt is always expressed as a percentageQuestion 18 of 2019. What does a correlation coefficient close to +1 or –1 indicate?Weak linear relationshipNo relationshipStrong linear relationshipNo variation in dataQuestion 19 of 2020. What does a correlation coefficient of +1 represent?No correlationNegative correlationWeak correlationPerfect positive correlationQuestion 20 of 20 Loading...
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