This Section contains Multiple Choice Questions MCQs on Correlation Analysis, Simple Regression Analysis, Multiple Regression Analysis, Coefficient of Determination (Explained Variation), Unexplained Variation, Model Selection Criteria, Model Assumptions, Interpretation of results, Intercept, Slope, Partial Correlation, Significance tests, OLS Assumptions, Multicollinearity, Heteroscedasticity, Autocorrelation etc. Lets start

## MCQ on Correlation and Regression With Answer

**Question 1:** The strength (degree) of the correlation between a set of independent variables X and a dependent variable Y is measured by

A) Coefficient of Correlation

B) Coefficient of Determination

C) Standard error of estimate

D) All of the above

**Question 2:** The percent of total variation of the dependent variable Y explained by the set of independent variables X is measured by

A) Coefficient of Correlation

B) Coefficient of Skewness

C) Coefficient of Determination

D) Standard Error or Estimate

E) Multicollinearity

**Question 3:** A coefficient of correlation is computed to be -0.95 means that

A) The relationship between two variables is weak

B) The relationship between two variables is strong and positive

C) The relationship between two variables is strong and but negative

D) Correlation coefficient cannot have this value

**Question 4:** Let the coefficient of determination computed to be 0.39 in a problem involving one independent variable and one dependent variable. This result means that

A) The relationship between two variables is negative

B) The correlation coefficient is 0.39 also

C) 39% of the total variation is explained by the independent variable

D) 39% of the total variation is explained by the dependent variable

**Question 5:** Relationship between correlation coefficient and coefficient of determination is that

A) both are unrelated

B) The coefficient of determination is the coefficient of correlation squared

C) The coefficient of determination is the square root of the coefficient of correlation

D) both are equal

**Question 6:** Multicollinearity exists when

A) Independent variables are correlated less than -0.70 or more than 0.70

B) An independent variables is strongly correlated with a dependent variable

C) There is only one independent variable

D) The relationship between dependent and independent variable is non-linear

**Question 7:** If “time” is used as the independent variable in a simple linear regression analysis, then which of the following assumption could be violated

A) There is a linear relationship between the independent and dependent variables

B) The residual variation is the same for all fitted values of Y

C) The residuals are normally distributed

D) Successive observations of the dependent variable are uncorrelated

**Question 8:** In multiple regression, when the global test of significance is rejected, we can conclude that

A) All of the net sample regression coefficients are equal to zero

B) All of the sample regression coefficients are not equal to zero

C) At least one sample regression coefficient is not equal to zero

D) The regression equation intersects the Y-axis at zero.

**Question 9:** A residual is defined as

A) $Y−\hat{Y}$

B) Error sum of square

C) Regression sum of squares

D) Type I Error

**Question 10:** What test statistic is used for a global test of significance?

A) Z test

B) t test

C) Chi-square test

D) F test

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## Correlation and Regression Analysis

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