M.E.

S INDIAN SCHOOL, DOHA - QATAR

WORKSHEET - 2023
Section : Boys’ and girls’ Date: 19/12/2023
Class & Div. : XI All Divisions. Subject: Economics
Lesson /Topic: Correlation (Statistics)
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1. Read the following statements - Assertion (A) and Reason (R). Choose one of the
correct alternatives given below:

Assertion (A): Coefficient of correlation is always positive.

Reason (R): Coefficient of correlation lies always between -1 and +1

a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A)

b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assertion (A)

c) Assertion (A) is true but Reason (R) is false.

d) Assertion (A) is false but Reason (R) is true
2. Read the following statements carefully and choose the correct alternative from the
following:

Statement 1 – When variables change in a constant proportion, it is called linear

correlation.

Statement 2 – When variables do not change in any constant proportion, it

is called nonlinear-correlation.

Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is false and Statement 2 is true
d) Statement 2 is true and Statement 1 is false

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3. The unit of correlation coefficient between height in feet and weight in kg is

a) Kg/feet
b) Percentage
c) Non-existent
d) All the above
4. The range of simple correlation coefficient is
a) 0 to infinity
b) Minus one to plus one
c) Minus infinity to plus infinity
d) All the above

5. If rXY is positive the relation between X and Y is of the type

a) When Y increases X increases

b) When Y decreases X increases
c) When Y increases X does not change
d) All the above
6. If precisely measured data are available the simple correlation coefficient is
a) More accurate than rank correlation coefficient
b) Less accurate than rank correlation coefficient
c) As accurate as the rank correlation coefficient
d) All the above

Case study based questions

Correlation is commonly classified into negative and positive correlation. The

correlation is said to be positive when the variables move together in the same
direction. When the income rises, consumption also rises. When income falls,
consumption also falls. Sale of ice-cream and temperature move in the same
direction. The correlation is negative when they move in opposite directions.
When the price of apples falls, its demand increases. When the prices rise its
demand decreases. When you spend more time in studying, chances of your
failing decline. When you spend less hours in study, chances of your failing
increase. These are instances of negative correlation. The variables move in
opposite direction.

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 Widely used techniques for the study of correlation are scatter diagrams,
Karl Pearson’s coefficient of correlation and Spearman’s rank correlation. A
scatter diagram visually presents the nature of association without giving any
specific numerical value. A numerical measure of linear relationship between two
variables is given by Karl Pearson’s coefficient of correlation. A relationship is
said to be linear if it can be represented by a straight line. Another measure is
Spearman’s coefficient of correlation, which measures the linear association
between ranks assigned to individual items according to their attributes.
Attributes are those variables which cannot be numerically measured such as
intelligence of people, physical appearance, honesty etc.

7. When the variables move together in the same direction is called …………..
8.visually presents the nature of association without
giving any specific numerical value
9.measures the linear association between ranks
assigned to individual items according to their attributes
10. are those variables which cannot be numerically
measured such as intelligence of people, physical appearance, honesty etc.
11. Define Correlation.
12. What is the difference between positive and negative correlation?
13. Define the following concept
a) Linear correlation
b) Non-linear correlation
c) Partial correlation
14. Distinguish between Simple and Multiple correlation?
15. Interpret the values of r as 1, -1 and 0.
16. What are the methods to estimate correlation?
17. What is Scattered Diagram
18. Compute Karl Pearson’s coefficient of correlation and interpret the result.

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19. Calculate Karl Pearson’s coefficient of correlation and interpret the result.

20. Calculate Karl Pearson’s coefficient of correlation and interpret the result.

21. Calculate the rank correlation co-coefficient between ‘X’ and ‘Y’ variables.

X 10 20 35 14 18 21 16
Y 15 25 18 19 20 26 27

22. Find out coefficient of Rank Correlation.

Marks in 15 10 20 28 12 10 16 18 (N=8)
Statistics
Marks in 16 14 10 12 11 15 18 20 (N=8)
Economics

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