Q. A coefficient of correlation is computed to be -0.95 means that
✅ Correct Answer: (C)
The relationship between two variables is strong and but negative
Business Statistics MCQs and Notes
Q. The percent of total variation of the dependent variable Y explained by the set of independent variables X is measured by
✅ Correct Answer: (C)
Coefficient of Determination
Q. One use of a regression line is
✅ Correct Answer: (D)
to estimate the change in y for a one-unit change in x.
Q. Past data has shown that the regression line relating the final exam score and the midterm exam score for students who take statistics from a certain professor is: final exam = 50 + 0.5 × midterm One interpretation of the slope is
✅ Correct Answer: (A)
a student who scored 0 on the midterm would be predicted to score 50 on the final exam.
Q. The value of a correlation is reported by a researcher to be r = −0.5. Which of the following statements is correct?
✅ Correct Answer: (A)
The x-variable explains 25% of the variability in the y-variable.
Q. Relationship between correlation coefficient and coefficient of determination is that:
✅ Correct Answer: (B)
The coefficient of determination is the coefficient of correlation squared
Q. Let the coefficient of determination computed to be 0.39 in a problem involving one independent variable and one dependent variable. This result means that:
✅ Correct Answer: (C)
39% of the total variation is explained by the independent variable
Q. A coefficient of correlation is computed to be -0.95 means that:
✅ Correct Answer: (C)
The relationship between two variables is strong and but negative
Q. The percent of total variation of the dependent variable Y explained by the set of independent variables X is measured by:
✅ Correct Answer: (C)
Coefficient of Determination
Q. The strength (degree) of the correlation between a set of independent variables X and a dependent variable Y is measured by
✅ Correct Answer: (A)
Coefficient of Correlation