Question 1

Correlation measures the:

Accepted Answer

a)Strength of the relationship between two variables

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d) Sum of two variables

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b)Difference between two variables

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c) Total value of two variables

Question 2

If the value of one variable increases and the value of another variable also increases, the correlation is:

Accepted Answer

a)Positive

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b)Negative

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d) Indeterminate

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c) Zero

Question 3

A correlation coefficient of +1 indicates:

Accepted Answer

c) A perfect positive correlation

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b) A perfect negative correlation

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a)No relationship between the variables

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d) A weak correlation

Question 4

Which of the following symbols represents the correlation coefficient?

Accepted Answer

c) r

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b) μ (mu)

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d) Σ (sigma)

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a)σ (sigma)

Question 5

If the value of one variable increases while the value of the other variabledecreases, the correlation is

Accepted Answer

b) Negative

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c) Zero

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a) Positive

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d) Perfect

Question 6

Whenthe correlation coefficient is 0, it indicates:

Accepted Answer

c) No linear relationship between the variables

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b) A strong negative relationship

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d) A perfect linear relationship

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a) A strong positive relationship

Question 7

The range of the correlation coefficient (r) is between:

Accepted Answer

b) -1 and +1

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d) -2 and +2

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c) -1 and 0

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a) 0 and 1

Question 8

Whichof the following indicates the weakest correlation between two variables?

Accepted Answer

c) r = -0.25

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b) r = -0.65

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a) r = 0.85

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d) r = 0.45

Question 9

Themethod that is commonly used to calculate the correlation coefficient is:

Accepted Answer

c) Karl Pearson’s method

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d) Moving average method

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b) Scatter diagram method

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a) Regression method

Question 10

In a scatter diagram, if the points lie close to a straight line rising from leftto right, the correlation is:

Accepted Answer

a) Positive

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c) Zero

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b) Negative

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d) Curvilinear

Question 11

A perfect negative correlation is indicated by a correlation coefficient of:

Accepted Answer

c) -1

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d) 0.5

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a) +1

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b) 0

Question 12

Whichtype of correlation is used when analyzing the relationship between more thantwo variables?

Accepted Answer

c) Multiple correlation

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b) Partial correlation

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d) Rank correlation

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a) Simple correlation

Question 13

Rank correlation is used when:

Accepted Answer

b) Data is qualitative

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d) Data follows a perfect linear relationship

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c) Data is normally distributed

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a) Data is quantitative

Question 14

Ascatter diagram shows no obvious pattern, with points randomly scattered. Thecorrelation coefficient is likely to be:

Accepted Answer

c) Close to 0

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b) Close to -1

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d) Close to 0.5

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a) Close to 1

Question 15

Whichof the following is an assumption of Pearson’s correlation coefficient?

Accepted Answer

a) The relationship between the variables is linear

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b) The variables are nominal

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d) The data contains outliers

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c) The variables are categorical

Question 16

Iftwo variables have a correlation coefficient of 0.9, what does it suggest?

Accepted Answer

c) The variables have a strong positive relationship

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b) The variables have a weak positive relationship

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d) The variables have a strong negative relationship

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a) The variables have no relationship

Question 17

In which case would you use Spearman's rank correlation coefficient?

Accepted Answer

b) When data is ordinal

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a) When data is normally distributed

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d) When there is a curvilinear relationship

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c) When data is interval or ratio

Question 18

What is indicated by a correlation coefficient of -0.8?

Accepted Answer

d) A strong negative relationship

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a) A weak positive relationship

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c) A strong positive relationship

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b) A weak negative relationship

Question 19

Ifthe variables X and Y have a correlation coefficient close to zero, what can weinfer?

Accepted Answer

b) X and Y have no linear relationship

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c) X causes Y

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d)Y causes X

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a) X and Y have a strong relationship

Question 20

Incorrelation analysis, which of the following statements is true?

Accepted Answer

c) Correlation measures both the direction and strength of the relationshipbetween two variables

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b) A high correlation always indicates a direct cause-and-effect relationship

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d) Correlation can only be positive

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a) Correlation implies causation

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