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Question

For an experiment we have the following data set: n = 4, ∑x = a,  ∑y = 10, ∑xy  = 21, ∑x 2 = 30, ∑y 2 = 30. If the correlation coefficient is -0.8 then the value of a is:

This question was previously asked in
SSC CGL 2020 (Tier-2) Statistics Previous Year Paper 3 (28-Jan-2022)
The correct answer is

10

Finding 'a' from the Correlation Coefficient

We are given n = 4, \(\sum x = a\), \(\sum y = 10\), \(\sum xy = 21\), \(\sum x^2 = 30\), \(\sum y^2 = 30\), and r = -0.8. We must find a.

Pearson Correlation Coefficient Formula

The Pearson correlation coefficient is given by:

\(r = \dfrac{n\sum xy - (\sum x)(\sum y)}{\sqrt{[n\sum x^2 - (\sum x)^2][n\sum y^2 - (\sum y)^2]}}\)

Substituting the Values

Plugging in the given data:

\(-0.8 = \dfrac{4(21) - (a)(10)}{\sqrt{[4(30) - a^2][4(30) - 10^2]}}\)

\(-0.8 = \dfrac{84 - 10a}{\sqrt{(120 - a^2)(20)}}\)

Testing the Options

Rather than solving the resulting equation directly, we substitute each option for a.

Option: a = 10

\(r = \dfrac{84 - 10(10)}{\sqrt{20(120 - 100)}} = \dfrac{-16}{\sqrt{20 \times 20}} = \dfrac{-16}{20} = -0.8\)

This matches the given correlation coefficient exactly.

Option: a = 7

\(r = \dfrac{84 - 70}{\sqrt{20(120 - 49)}} = \dfrac{14}{\sqrt{1420}} \approx 0.37\) — does not match.

Option: a = 8

\(r = \dfrac{84 - 80}{\sqrt{20(120 - 64)}} = \dfrac{4}{\sqrt{1120}} \approx 0.12\) — does not match.

Option: a = 9

\(r = \dfrac{84 - 90}{\sqrt{20(120 - 81)}} = \dfrac{-6}{\sqrt{780}} \approx -0.21\) — does not match.

Conclusion

Only a = 10 produces the given correlation coefficient r = -0.8. Hence, the value of a is 10.

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Similar Questions

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  2. If a data set contains n paired values on two variables x(independent) and y(dependent), then their plot is called:

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Important Questions from Correlation Analysis

  1. If X ∼ N (0, 1) and Y = X2 then the correlation coefficient r (X, Y) is

  2. Given below are two statements: One is labelled as Assertion (A) and the other is labelled as Reason (R).

    Assertion (A): If the securities with less than perfect negative correlation between their price movements are combined, portfolio risk can be reduced significantly.

    Reason (R): The term with negative correlation has the effect of reducing the computed value of total portfolio risk, given other terms that are positive.

    In the light of the above statements, choose the most appropriate answer from the options given below:

  3. The two-regression equation of variable \(\rm{x}\) and \(\rm{y}\)  are

    \(\rm{y = 0.8x + 9.8}\) and \(\rm{x = 10.2 + 0.6y}\)

    The coefficient of correlation between \(\rm{x}\) and \(\rm{y}\) is

  4. Let $X$ be a random variable that follows $Uniform(-1, 1)$ distribution. The conditional distribution of the random variable $Y$ given $X = x$ is the $Uniform(x^2 - 0.1, x^2 + 0.1)$ distribution.

    The value of $correlation(X, Y)$ is __________ . (Answer in integer)
  5. In the variance-covariance matrix given below, which one of the following pairs of elements has the highest correlation?

    $$ \begin{bmatrix} & P & Q & R & S \\ P & 0 & 0 & 0 & 0 \\ Q & 0 & 3.73 & 1.85 & 3.23 \\ R & 0 & 1.85 & 0.93 & 1.61 \\ S & 0 & 3.23 & 1.61 & 2.79 \end{bmatrix} $$
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