CORRELATION

1. What is correlation analysis:

Correlation analysis is a statistical procedure by which the degree of relationship between two or more
variables is determined. According to Prof. King, ―if it is proved true that in a large number of instances two
variables tend always to fluctuate in the same or in opposite direction, we consider that the fact is established
that a relationship exists. This relationship is called correlation.‖
2, Explain the implication of positive & negative correlation.
Positive correlation implies that change in one variable is followed by a change in the other variable in same
direction i.e. when both variable changes in the same direction correlation is said to be positive. When the
changes in the two variables are in opposite direction the correlation is termed as negative.
As for example, height and weight,, yield and rainfall, profit and investment etc. are positively correlated.

On the other hand, if the two variables move in the opposite directions i.e. an increase (or a decrease) on the
part of one variable result a decrease (or an increase) on the part of the other variable, then the two variables
are known to have a negative correlation. The price and demand of an item, the profits of Insurance Company
and the number of claims it has to meet etc. are examples of variables having a negative correlation.

The two variables are known to be uncorrelated if the movement on the part of one variable does not produd‘e
any movement of the other variable in a particular direction. As for example, shoe size and intelligence level
are uncorrelated.

Basic:
3. Correlation analysis aims at:
(a) Predicting one variable for a given value of the other variable.
(b) Establishing relation between two variables.
(c) Measuring the extent of relation between two variables. (d) Both (b) and (c).
[ANS. D]
4. The correlation between shoe-size and intelligence is:
(a) Zero (b) positive (c) Negative (d) None of these.
[ANS. A]
5. What is spurious correlation:
(a) It is a bad relation between two-variables. (b) It is very low correlation between two variables
(c)‘1t is the correlation between two variables having no causal relation. (d) It is a negative correlation.
[ANS. C]
6................................ is concerned with the measurement of the ―strength of association‖ between variables:
(a) correlation (b) regression (c) both (d) none
` [ANS. A]

7. If the amount of change in one variable tends to bear a constant ratio to the amount of change in the other
variable, then correlation is said to be
(a) non linear (b) linear (c) both (d) none
[ANS. B]
8. Unemployment index and the purchasing power of the common man‖ Correlations are:
(a) positive (b) negative (c) zero (d) none
[ANS. B]
9. Simple correlation is called:
(a) linear correlation (b) nonlinear correlation (c) both (d) none
[ANS. A]
10. In case The ages of husbands and wives‘ ...........correlation is:
(a) positive (b) negative (c) no correlation (d) none
[ANS. A]
11. In case ‗Shoe size and intelligence‘:
(a) positive correlation (b) negative correlation (c) no correlation (d) none [ANS. C]
12. In case ‗Insurance companies‘ profits and the number of claims they have to pay‖..
(a) positive correlation (b) negative correlation (c) no correlation (d) none [ANS. B]
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13. In case ‗Years of education and income………….
(a) positive correlation (b) negative correlation (c) no correlation (d) none [ANS. A]

14. In case ‗Amount of rainfall and yield of crop…………..

(a) positive correlation (b) negative correlation (c) no correlation (d) none [ANS. A]

15. When high values of one variable are associated with high values of the other & low values of one variable
are associated with low values of another, then they are said to be:
(a) positively correlated (b) directly correlated (c) both (d) none [ANS. C]

16. if high values of one tend to low values of the other, they are said to be:
(a) negatively correlated (b) inversely correlated (c) both (d) none [ANS. C]

17. In case ‗Age and Income‘ correlation is:

(a) positive (b) negative (c) zero (d) none [ANS. A]

18. in case ‗Speed of an automobile and the distance required to stop the car after applying brakes‘ —
correlation is:
(a) positive (b) negative (c) zero (d) none [ANS. A]

19. in case ‗Sa1e of woolen garments and day temperature‘

(a) positive (b) negative (c) zero (d) none [ANS. B]

20. In case ‗Sale of cold drinks and day temperature‘ correlation is:
(a) positive (b) negative (c) zero (d) none [ANS. A]

21. In case of Production average fixed cost per unit‘ - correlation is:
(a) positive (b) negative (c) zero (d) none [ANS. B]

22. Demand for goods and their prices under normal times‖ Correlation -is are:
(a) positive (b) negative (c) zero (d) none [ANS. B]

Bivariate Frequency Table:

When data are collected on two variables simultaneously they are known as bivariate data and the
corresponding frequency distribution, derived from it, is known as Bivariate Frequency Distribution. e.g. or
Joint Frequency Distribution or Two way Distribution of the two variable x and y.
City 0 to 100 100 to 200 Total
Jaipur 400 300 700
Jodhpur 200 600 800
Udaipur 100 1100 300
Total 700 1100 1800

24. Bivariate Data are the data collected for:

(a) Two variables (b) More than two variables
(c) Two variables at the same point of time (d) Two variables at different points of time. [ANS. C]

25. For a bivariate frequency table having (p + q) classification the total number of cells is:
(a) p (b) p + q (c) q (d) pq [ANS. D]
26. Some of the cell frequencies in a bivariate frequency table may be:
(a) Negative (b) Zero (c) a or b (d) None of these [ANS. B]

27. For a p x q bivariate frequency table, the maximum number of marginal distributions is: -
(a) p (b) p + q (c) 1 (d) 2 [ANS. D]

28. For a p x q classification of bivariate data, the maximum number of conditional distributions is v -
(a) p (b)p + q (c) pq (d) p or q [ANS. B]

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29. Scatter Diagram:
This is a simple diagrammatic method to establish correlation between a pair of variables. Unlike product
moment correlation co-efficient, which can measure correlation- only when the variables are having a linear
relationship, scatter diagram can be applied for any type of correlation — linear as well non –linear i.e.
curvilinear.
In case of positive correlation, the plotted points lie from lower left corner to upper right corner, in case of a
negative correlation the plotted points concentrate from upper left to lower right and in case of zero
correlation, the plotted points would be equally distributed without depicting any particular pattern.

Scatter Diagram:
30. If the value of correlation coefficient is positive, then the points in a scatter diagram tend to cluster:
(a) From lower left corner to upper right corner. (b) From lower left corner to lower right corner.
(c) From lower right corner to upper right corner. (d) From lower right corner to upper right corner.
[ANS. A]
31. When r = 1, all the points in a scatter diagram would lie
(a) On a straight line directed from lower left to upper right.
(b) On a straight -line directed from upper left to lower right.
(c) On a straight line. (d) Both (a) and (b). [ANS. A]

32. If the plotted points in a scatter diagram lie from upper left to lower right, then the correlation- is:
(a) Positive (b) Zero (c) Negative (d) None of these.
[ANS. C]
33. If the plotted points in a scatter diagram are evenly distributed, then the correlation is
(a) Zero (b) Negative (c) Positive (d) (a) or (b) [ANS. A]

34. If all the plotted points in a scatter diagram lie on a single line, then the correlation is
(a) Perfect positive (b) Perfect negative (c) Both (a) and (b) (d) Either (a) or (b).
[ANS. D]
35. Scatter diagram helps us to:
(a) ‘Find the nature of correlation between two variables.
(b) Compute the extent of correlation between two variables.
(c) Obtain the mathematical relationship between two variables. (d) Both (a) and (c). [ANS. A]

36. Scatter diagram is considered for measuring:

(a) Linear relationship between two variables. (b) Curvilinear relationship between two variables.
(c) Neither (a) nor (b) (d) Both (a) and (b). [ANS. D]

37. A scatter diagram indicates the type of correlation between two variables:
(a) true (b) false (c) both (d) none [ANS. A]

38. If the pattern of points (or dots) on the scatter diagram shows a linear path diagonally across the graph
paper from the bottom left-hand corner to the top right, correlation will be:
(a) negative (b) zero (c) positive (d) none [ANS. C]

39. Karl pearson’s product moment correlation coefficient:

This is the best method for finding correlation between two variables provided the relationship between the
two variables is linear. Pearson‘s correlation coefficient may be defined as the ratio of covariance between the
two variables to the product of the standard deviations of the two variables.
PROPERTIES OF CORRELATION COEFFICIENT:
(i) The Coefficient of Correlation is a unit-free measure.
This means that if x denotes height of a group of students expressed in cm and y denotes their
weight expressed in kg, then the correlation coefficient between height and weight would be free
from any unit.
(ii) The coefficient of correlation remains invariant under a change of origin and/or scale of the
variables under consideration.
(iii) The coefficient of correlation always, lies between-1 and 1, including both the limiting values i.e.
1  r  1.........................

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Karl Pearson’s Coefficient of correlation — Basic:
40. Person‘s correlation coefficient is used for finding:
(a) Correlation for any type of relation. (b) Correlation for linear relation only.
(c) Correlation for curvilinear relation only (d) Both (b) and (c). [ANS. B]

41. The coefficient of correlation between two variables

(a) Can have any unit. (b) Is expressed as the product of units of the two variables.
(c) Is a unit free measure (d) None of these. [ANS. C]

42. The value of correlation coefficient lies between:

(a) - 1 and +1 (b) -1 and 0 (c) 0 and 1 (d) none [ANS. A]

43. What are the limits of the correlation coefficient:

(a) No limit (b) -1 and 1. (c) 0 and 1, including the limits (d) -1 to 1, including the limits.
[ANS. D]
44. Correlation coefficient between two variables is a measure of their linear relationship:
(a) true (b) false (c) both (d) none [ANS. A]

45. The minimum value of correlation coefficient is:

(a) 0 (b) - 2 (c) 1 (d) -1 [ANS. D]

46. The maximum value of correlation coefficient is:

(a) 0 (b) 2 (c) 1 (d) -1 [ANS. C]

47. Correlation coefficient is a pure number:

(a) true (b) false (c) both (d) none [ANS. A]

48. Correlation coefficient is… ....... of the units of measurement:

(a) dependent (b) independent (c) both (d) none [ANS. B]

49. Product moment correlation coefficient is considered for:

(a) Finding the nature of correlation. (b) Finding the amount of correlation.
(c) Both (a) and (b). (d) Either (a) or (b). [ANS. C]

50. is a relative measure of association between two or more variables:

(a) Coefficient of correlation (b) Coefficient of regression
(c) Both (d) None [ANS. A]

51. A coefficient near + 1‘ indicates tendency for the larger values of one variable to be associated with the
larger values of the other:
(a) true (b) false (c) both (d) none [ANS. A]

52. A small value of r indicates only a linear type of relationship between the variables: -
(a) good (b) poor (c) maximum (d) highest [ANS. B]

Coefficient of Determination & Non — Determination:

53. If the coefficient of correlation between two variables is -0.9, then the coefficient of determination is:
(a) 0.9 - (b) 0.81 (c) 0.1 (d) 019 [ANS. B]

54. If the coefficient of correlation between two variables is 0.7 then the percentage of variation unaccounted
for is:
(a) 70% (b) 30% (c) 51% (d) 49% [ANS. C]
55. The coefficient of determination is defined by the formula:
unexplained variance explained variance
(a) r  1  (b) r 
2 2

total variance total variance

(c) both (d) none [ANS. C]

56. If r = 0.6 then the coefficient of non-determination is:

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(a) 0.4 (b) -0.6 (c) 0.36 (d) 0.64 [ANS. D]

57. The square of coefficient of correlation ‗r‘ is called the coefficient of:
(a) Determination (b) regression (c) both (d) none [ANS. A]

580
58. A relation r  1 
2
is not possible:
300
(a) true (b) false (c) both (d) none [ANS. A]

59. Whatever may be the value of r, positive or negative, its square will be:
(a) negative on1y (b) positive only (c) zero only (d) none only. [ANS. B]

Karl Person’s Method — Using Co variance and other Formulas:

60. When r = 0 then cov (x,y) is equal to:
(a) +1 (b) -1 (c) 0 (d) none [ANS. C]

61. Co-variances measures the joint variation of two variables:

(a) true (b) false (c) both (d) none [ANS. A]

62. If covariance of a series is 30 and standard deviation of X and Y series are 6 & 9.375 respectively, Find the
value of coefficient of correlation. [Ans. 0.53]

63. The coefficient of correlation between two varieties X & Y is 0.8 and their covariance is 20. If the variance
of X series is 16, find the standard deviation of Y series. [Ans. 6.25]

64. Calculate the coefficient of correlation between X & Y series from the following data:
Number of observation = 15 standard deviation of X series = 3.01,
Standard Deviation of Y series 3.03, summation of product deviation of X and Y series from their respective
arithmetic means = 122 [Ans. 0.89]

65. Covariance may be positive negative or zero:

(a) true (b) false (c) both (d) none [ANS. A]

66. Variance may be positive, negative or zero:

(a) true (b) false (c) both (d) none [ANS. B]

67. if for two variable x and y, the covariance, variance of x and variance of y are 40,16 and 256 respectively,
what is the value of the correlation coefficient:
(a) 0.01 (b) 0.625 (c) 0.4 (d) 0.5 [ANS. B]

68. If cov (x, y) 15, what restrictions should be put for the standard deviation of x and y:
(a) No restriction.
(b) The product of the standard deviations should be more than 15.
(c) The product of the standard deviations should be less than 15.
(d) The sum of the standard deviations should be less than 15. [ANS. B]

69. The relation r xy = cov (x,y)/sigma x × sigma y is:

(a) true (b) false (c) both (d) none [ANS. A]

70. Covariance measures variations of two variables

(a) joint (b) single (c) both (d) none [ANS. A]

71. Product moment correlation coefficient may be defined as the ratio of:
(a) The product of standard deviations of the two variables to the covariance between them.
(b) The covariance between the variables to the product of the variances of them.
(c) The covariance between the variable to the product of their standard deviations.
(d) Either (b) or (c). [ANS. C]
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72. The covariance between two variables is:
(a) Strictly positive (b) Strictly negative
(c) Always 0 (d) Either positive or negative or zero. [ANS. D]

73. if the covariance between two variables is 20 and the variance of one of the variables is 16, what would be
the variance of the other variable:
(a) More than 25 (b) More than 10 (c) Less than 10 (d) More than 1.25 [ANS. A]

Karl Pearson’s Method - Other Formula:-

74. Calculate the coefficient of correlation between X and Y series from the following data:
X Series Y Series
Sum of squares of deviation from arithmetic mean 136 138
Summation of product deviation •of X and Y series from their respective arithmetic means = 122.
(a) 0.98 (b) 0.89 (c) 0.79 (d) 0.97 [ANS. B]

 X  75, Y  80,  X  130,  Y 2  140,  XY  120. Find the value of ‗r‘:

2
75. if N  50,
(a) 0 (b) 1 (c) 2 (d) 3 [ANS. A]

76. Calculate Karl Person‘s coefficient of correlation for the data given below:
Independent Variable X : 3 7 5 4 6 8 2 7
Dependent Variable Y : 7 12 8 8 10 13 5 10 [Ans. 0.962]

77. What is the value of correlation coefficient due to Pearson on the basis of the following data:
x: -5 -4 -3 -2 -1 0 1 2 3 4 5
y: 27 18 11 6 3 2 3 6 11 18 27
(a) 1 (b) -1 (c) 0 (d)-0.5 [ANS. C]

[G] Karl Person’s Method — change in origin & scale of reference & _Miscellaneous:
Correlation coefficient is dependent of the choice of both origin & the scale of observations:
(a) true (b) false (c) both (d) none [ANS. B]

79. For calculation of correlation coefficient, a change of origin is:

(a) not possible (b) possible (c) both (d) none [ANS. B]

80. If u + 5x = 6 and 3y - 7v = 20 and the correlation coefficient between x and y is 0.58 then what would be
the correlation coefficient between u and v:
(a) 0.58 (b) -0.58 (c) -0.84 (d) 0.84 [ANS. B]

81. From the following data:

X: 2 3 5 4 7
Y: 4 6 7 8 10
The coefficien t of co rrelation was f ound to be 0.93. What is the correlation between u and v as given below:
u: -3 -2 0 -1 2
v: -4 -2 -1 0 2
(a) -0.93 (b) 0.93 (c) 0.57 (d) -0.57 [ANS. B]

82. Referring to the data presented in Q. No. 8 what would be the correlation between u and v:
u: 10 15 25 20 35
v: -24 -36 -42 -48 -60
(a) -0.6 (b) 0.6 (c) - 0.93 (d) 0.93 [ANS. C]

83. In calculating the Karl pearson‘s coefficient of correlation it is necessary that the data should be of
numerical measurements. The statement is:
(a) Va1id (b) not valid (c) both (d) none [ANS. A]

Spearman’s Rank Correlation:

84. Spearman’s Rank Correlation Coefficient:
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When we need finding correlation between two qualitative characteristics, say, beauty and intelligence, we
take recourse to using rank correlation coefficient. Rank correlation can also be applied to find the level of
agreement (or disagreement) between two judges so far as assessing a qualitative characteristic is concerned.
-As compared to product moment correlation coefficient, rank correlation coefficient is easier to compute.

85. Calculate the rank correlation coefficient from the data given below:
X: 75 88 95 70 60 80 81 50
Y: 120 134 150 115 110 140 142 100 [Ans.0.93]

86. For finding correlation between two atribi4es, we consider:

(a) Person‘s correlation coefficient (b) Scatter diagram
(c) Spearman‘s rank correlation coefficient (d) Coefficient of concurrent deviations. [ANS. C]

87. For finding the degree of agreement about beauty between two Judges in a Beauty Contest, we use:
(a) Scatter diagram (b) Coefficient of rank deviation.
(c) Coefficient of correlation (d) Coefficient of concurrent deviation. [ANS. B]

88. Two judges in the following orders rank ten competitors in a beauty contest.
Rank by first Judge: 1 6 5 10 3 2 4 9 7 8
Rank by second Judge: 3 5 8 4 7 10 2 1 6 9
Find out Spearman‘s coefficient of rank correlation. [Ans. -0.212]

89. The coefficient of rank correlation between the marks in Statistics and
Mathematics obtained by a certain group of students is 2/3 and the sum of the squares of the difference in
ranks is 55. Find the number of students in the group.
[a] 8 [b] 12 [4] 10 [d] 9 [ANS. C]

90. If the rank correlation coefficient between marks in management and mathematics for a group of student
is 0.6 and the sum of squares of the differences in ranks is 66, what is the number of students in the group:
(a) 10 (b) 9 (c) 8 (d) 11 [ANS. A]

91. The coefficient of rank correlation of the marks obtained by 10 students in Mathematics and Statistics
was found to be 0.5. It was then detected that the difference in ranks in the two subjects for one particulars
student was wrongly taken to be 3 in place of 7. What should be the correct rank correlation coefficient.
[a] 0.298 [b] 0.258 [c] 0.122 [d] 0.2 [ANS. B]

92. While computing rank correlation coefficient between profit and investment for the last 6 years of a
company the difference in rank for a year was taken 3 instead of 4. What is the rectified rank correlation
coefficient if it is known that the original value of rank correlation coefficient was 0.4:
(a) 0.3 (b) 0.2 (c) 0.25 (d) 0.28 [ANS. B]

93. If there is a perfect this agreement between the marks in Geography and Statistics, then what .would be
the value of rank correlation coefficient:
(a) Any value (b) Only (c) Only -1 (d) (b) or (c) [ANS. C]

94. If the sum of squares of differences of ranks, given by two judges A and B, of 8 students is 21, what is the
value of rank correlation coefficient?
(a) 0.7 (b) 0.65 (c) 0.75 (d) 0.8 [ANS. C]

95. Great advantage of is that it can be used to rank attributes which can not be expressed by
way of numerical value:
(a) Concurrent correlation (b)-regression (c) Rank-correlation (d) none
[ANS. C]
96. The sum of the difference of rank is
(a) 1 (b)-1 (c) 0 (d) none [ANS. C]

97. Rank correlation coefficient. lies between:

(a) 0 to 1 (b) - 1 to + 1 (c) -1 to 0 (d) both

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98. In yank correlation coefficient the association need not be linear:
(a) true (b) false (c) both (d) none
99. Maximum value of Rank Correlation coefficient is:
(a) 1 (b) 1 (c) 0 (d) none

Concurrent Deviation Method:

Coefficient of concurrent Deviations:
A very simple method of finding correlation when we are not serious about the magnitude of the two variable
is the application concurrent deviations.

100. Calculate the coefficient of correlation, using the method of concurrent deviation, between supply and
demand of an item for a seven year period as given below:
Year: 1981 1982 1983 1984 1985 1986 1987
Supply: 125 160 164 174 155 170 165
Demand: 115 125 192 190 165 174 124 [Ans. 0.8164]

101. When we are not concerned with the magnitude of the two variables under discussion, we consider:
(a) Rank correlation coefficient (b) Product moment correlation coefficient
(c) Coefficient of concurrent deviation (d) (a) or (b) but not (c)

102. What is the quickest method to find correlation between two variables:
(a) Scatter diagram (b) Method of concurrent deviation
(c)Method of rank correlation (d) Method of product moment correlation

103. What are the limits of the coefficient of concurrent deviations:

(a) No limit (b) Between -1 and 0, including the limiting value
(c) Between 0 arid 1, including the 1imiting values
(d) Between -1 and 1, the limiting values inclusive

104. The coefficient of concurrent deviation for P pairs of observations was found to be1/√3. If the number of
concurrent deviation was found be 6 then the va1ue of p is.
(a) 10 (b) 9 (c) 8 (d) none of these

105. For 10 pairs of observations, No. of concurrent deviations was found to be 4. What, is the value of the
coefficient of concurrent deviation:
(a) √0.2 (b) −√0.2 (c) 1/3 (d) -1/3

Correlation — Miscellaneous:
106. The correlation coefficient being + 1. if the slope of the straight line in a scatter diagram is:
(a) positive (b) negative (c) zero (d) none

107. Correlation coefficient can be found out by:

(a) Scatter Diagram (b) b) Rank Method (c) both (d) none

108. The partial correlation coefficient lies between:

(a) - 1 and +1 (b) 0 and + 1 (c) -1 and (d) none

109. r12 is the same as r21 :

(a) true (b) false (c) both (d) none

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