Assignment 2: CORRELATION AND REGRESSION

Question 1. Calculate Karl Pearson’s coefficient of correlation between expenditure on advertising and sales from
the data given below.
Advertising expenses (’000 Rs. ): 39 65 62 90 82 75 25 98 36 78
Sales (lakh Rs.): 47 53 58 86 62 68 60 91 51 84
Question 2. From the following table calculate the coefficient of correlation by Karl Pearson’s method.
X: 6 2 10 4 8
Y: 9 11 a 8 7
Arithmetic means of X and Y series are 6 and 8 respectively.

Question 3. Calculate the coefficient of correlation between X and Y series from the following data:
X: 15 25 3.01 136
Y: 15 18 3.03 138
Question 4. The coefficient of correlation between two variables X and Y is 0.48. The covariance is 36. The
variance of X is 16. Find the standard deviation of Y .

Question 5. Given the following information :

X X
rxy = 0.8, xy = 60, σy = 2.5and x2 = 90

, where x and y are the deviations from the respective means, find the number of items (n).

Question 6. The covariance of two perfectly correlated variables X and Y is 96. Determine σX and σY if it is
known that variance of X and that of Y is in the ratio of 4 : 9.

Question 7. (i) Compute the correlation coefficient between the corresponding values of X and Y in the following
table:
X: 2 4 5 6 8 11
Y: 18 12 10 8 7 5
(ii) Multiply each X value in the table by 2 and add 6. Multiply each value of Y in the table by 3 and subtract
15. Find the correlation coefficient between the two new sets of values. Explain why you do or do not obtain the
same result as in (i).

Question 8. Compute the correlation coefficient between the corresponding values of X and Y in the following
table:
X: 1 2 3 4
Y: 1 4 9 16
Is the correlation coefficient equal to unity? If not, why not?

Question 9. If the relation between two random variables x and y is 2x + 3y = 4, then the correlation coefficient
between them is :
(i) – 2/3, (ii) 1, (iii) – 1, (iv) none of these.

Question 10. From the following data, obtain the two regression equations:
Sales : 91 97 108 121 67 124 51 73 111 57
Purchases : 71 75 69 97 70 91 39 61 80 47
Question 11. From the data given below find :
(a) The two regression coefficients. (b) The two regression equations.
(c) The coefficient of correlation between the marks in Economics and Statistics.
(d) The most likely marks in Statistics when marks in Economics are 30.

1
 Marks in Economics : 25 28 35 32 31 36 29 38 34 32
Marks in Statistics : 43 46 49 41 36 32 31 30 33 39

Question 12. A panel of judges A and B graded seven debators and independently awarded the following marks :

Debator 1 2 3 4 5 6 7
Marks by A : 40 34 28 30 44 38 31
Marks by B : 32 39 26 30 38 34 28

An eighth debator was awarded 36 marks by Judge A while Judge B was not present. If Judge B was also
present, how many marks would you expect him to award to eighth debator assuming same degree of relationship
exists in judgement ?

Question 13. The data about the sales and advertisement expenditure of a firm is given below :

Sales Advertisement(in crores of Rs.) expenditure(in crores of Rs.)

Means 40 6
Standard deviations 10 1 ·5
Coefficient of correlation = r = 0·9

(i) Estimate the likely sales for a proposed advertisement expenditure of Rs. 10 crores.
(ii) What should be the advertisement expenditure if the firm proposes a sales target of 60 crores of rupees ?

Question 14. Point out the inconsistency, if any, in the following statement. “The regression equation of y on
x is 2y + 3x = 4 and the correlation coefficient between x and y is 0·8”.

Question 15. The lines of regression of a bivariate population are :

8x–10y + 66 = 0 and 40x–18y = 214

The variance of x is 9. Find

(i) The mean values of x and y; (ii) Correlation coefficient between x and y; (iii) Standard deviation of y.

Question 16. Why two lines of regression, explain by example.

Question 17. (a) For two variables x and y with the same mean, the regression equations are y = 2x + b and
x = 3y + β. Then βb is :
(b) Given below is the information relating to a bivariate distribution : Regression equation of Y on X :
Y = 20 + 04X
Mean of X = 30 ; Correlation coefficient between X and Y = 0·8. Find the regression equation of X on Y

Question 18. If the two lines of regression are :

4x–5y + 30 = 0 and 20x–9y–107 = 0,

which of these is the line of regression of x on y, and y on x. Find rxy and σy when σx = 3.

Question 19. The following data were collected on the heights (inches)b and weights (pounds) of women swim-
mers.
Height: 68 64 62 65 66
Weight: 132 108 102 115 128

a. Develop a scatter diagram for these data with height as the independent variable.
b. What does the scatter diagram indicate about the relationship between the two variables?
c. If a swimmer’s height is 63 inches, what would you estimate her weight to be?