CMA Foundation · Fundamentals of Business Mathematics and Statistics · Correlation and Regression
From the data of a manufacturing unit in Coimbatore, the regression coefficient of Y on X is 0.8 and that of X on Y is 0.45. The coefficient of determination is:
The coefficient of determination is 0.36. It equals the product of the two regression coefficients, 0.8 multiplied by 0.45. The square root of this, 0.6, would be the correlation coefficient, so 0.60 is not the coefficient of determination, and 0.64 is the unexplained proportion.
- A0.36Correct
- B0.60
- C0.64
- D0.125
Explanation
r² equals byx x bxy = 0.8 x 0.45 = 0.36, which is the coefficient of determination. Then r = 0.6, so 0.60 is the correlation coefficient, not r². 0.64 is 1 - r², the unexplained proportion.
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