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Correlation Analysis Notes For MBA 1st Year Semester Very Short Question Answer

Correlation Analysis Notes For MBA 1st Year Semester Very Short Question Answer

Correlation Analysis Notes For MBA 1st Year Semester Very Short Question Answer

Correlation Analysis Notes For MBA 1st Year Semester Very Short Question Answer:- In this post, you will learn about Correlation Analysis Notes For MBA 1st Year Semester Very Short Question-Answer and Study Material Notes Sample Model Practise Notes Rank Method And Kari Pearson’s Coefficient Of Correlation And Properties Of Correlation Regression And Properties Of Correlation. Regression Analysis Fitting Of A Regression Line And Interpretation Of Results, Properties Of Regression Coefficients And Relationship Between Regression And Correlation.

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MBA Topic Chapter Semester Wise Sample Model Practice Question Answer Papers

Correlation Analysis Notes For MBA 1st Year Semester Very Short Question Answer
Correlation Analysis Notes For MBA 1st Year Semester Very Short Question Answer

Q.1. What is meant by correlation?

Ans. The term correlation can be defined as the degree of interdependence between two variables Two variables are said to be correlated when the change in the value of one variable leads to the change in the values of the other. In other words, two variables of the same group are said to be correlated when an increase in the value of one variable leads to an increase in the value of the other or an increase in the value of one variable leads to the decrease in the value of the other or the decrease in the value of one variable, leads to the decrease in the value of the other or decrease in the value of one variable leads to an increase in the value of the other variables.

Q.2. Define the term positive correlation.

Ans. When an increase in the value of one variable leads to an increase in the value of the other variable and when the decrease in the value of one variable leads to the decrease in the value of the other variable, the correlation between the two variables is said to be a positive correlation.

Q.3. What is the meaning of perfect correlation?

Ans. When the change in the values of two related variables is in the same direction and same proportion, the correlation is called perfect positive correlation. The coefficient of correlation, in this case, is +1. On the other hand, when the value of the two related variables changes in the same proportion but in opposite direction, the correlation is called a perfect negative correlation. The coefficient of correlation, in this case, is -1.

Q.4. What is Karl Pearson’s coefficient of correlation?

Ans. This method of measuring correlation was given by Karl Pearson in 1896. This method is also known as ‘Pearson coefficient of correlation’ or ‘Product moment method of correlation’. It is one of the most widely used mathematical methods of computing correlation. It clearly explains the degree and direction of the relationship between two variables. Karl Pearson’s coefficient is denoted easy and it is computed on the basis of mean and standard deviation.

Q.5. Write the three assumptions of Karl Pearson’s coefficient of correlation. 

Ans. The three assumptions of Karl Pearson’s coefficient of correlation are:

  1. Normality.
  2. Cause and effect relationship.
  3. Linear relationship

Q.6.Walter the two merits and demerits of Spearman’s rank difference method.

Ans. Merits: These are as follows:

  1. This method is easy to calculate and simple to understand as compared to Karl Pearson’s method.
  2. This is the only method that can be used in calculating the coefficient of correlation.

Q.7. Give any two merits and demerits of coefficient of concurrent deviation method. 

Ans. Merits: The two merits are:

  1. It is the simplest of all the methods and it is also easy to understand. 
  2. This method is specifically useful when the number of items is very large. 

Demerits: The two demerits are: 

  1. In this method, only the direction of change is studied and the magnitude of change is completely ignored. 
  2. It is a rough indicator of correlation. 
    Correlation Analysis Notes For MBA 1st Year Semester Very Short Question Answer

Correlation Analysis Notes For MBA 1st Year Semester Very Short Question Answer
Correlation Analysis Notes For MBA 1st Year Semester Very Short Question Answer

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