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Question

Let θ be the angle made by the line of regression of Y on X. If σ Y= 2σ X and the correlation coefficient between X and Y is 0.3, the value θ equals

This question was previously asked in
SSC CGL 2019 (Tier 2) GS Finance & Economics Previous Year Paper (17-Nov-2020)
The correct answer is

tan-1 0.6

Understanding the Angle of the Regression Line of Y on X

The question asks for the angle made by the line of regression of Y on X with the positive x-axis. This angle, denoted by $\theta$, is related to the slope of the regression line. The line of regression of Y on X is used to predict the value of Y based on a given value of X.

The general form of the regression line of Y on X is given by:

$$Y - \bar{Y} = b_{YX}(X - \bar{X})$$

where:

  • $Y$ is the dependent variable
  • $X$ is the independent variable
  • $\bar{Y}$ is the mean of Y
  • $\bar{X}$ is the mean of X
  • $b_{YX}$ is the regression coefficient of Y on X, which represents the slope of the regression line of Y on X.

The angle $\theta$ that this line makes with the positive direction of the X-axis is such that its tangent is equal to the slope of the line. Therefore:

$$\tan \theta = b_{YX}$$

Calculating the Regression Coefficient \(b_{YX}\)

The regression coefficient of Y on X, $b_{YX}$, can be calculated using the correlation coefficient between X and Y ($r$), the standard deviation of Y ($\sigma_Y$), and the standard deviation of X ($\sigma_X$). The formula is:

$$b_{YX} = r \frac{\sigma_Y}{\sigma_X}$$

Using the Given Information

We are given the following information:

  • The relationship between the standard deviations: $\sigma_Y = 2\sigma_X$
  • The correlation coefficient between X and Y: $r = 0.3$

Now, let's substitute these values into the formula for $b_{YX}$:

$$b_{YX} = r \frac{\sigma_Y}{\sigma_X} = (0.3) \frac{2\sigma_X}{\sigma_X}$$

We can cancel out $\sigma_X$ from the numerator and the denominator (assuming $\sigma_X \neq 0$, which is typically the case for meaningful regression):

$$b_{YX} = 0.3 \times 2$$

$$b_{YX} = 0.6$$

Finding the Angle \(\theta\)

We know that $\tan \theta = b_{YX}$. Substituting the calculated value of $b_{YX}$:

$$\tan \theta = 0.6$$

To find the angle $\theta$, we take the inverse tangent (arctan) of 0.6:

$$\theta = \tan^{-1}(0.6)$$

This is the angle made by the regression line of Y on X with the positive x-axis.

Comparing with Options

Let's compare our result with the given options:

  1. $\tan^{-1}\ 0.3$
  2. $\cot^{-1}\ 0.3$
  3. $\tan^{-1}\ 0.6$
  4. $\cot^{-1}\ 0.6$

Our calculated value, $\theta = \tan^{-1}(0.6)$, matches option 3.

Conclusion

Based on the given standard deviations and correlation coefficient, the regression coefficient of Y on X is 0.6. The angle made by the regression line of Y on X with the x-axis is the angle whose tangent is this coefficient. Therefore, the value of $\theta$ is $\tan^{-1}(0.6)$.

Quantity Symbol Value/Relation Given
Correlation Coefficient $r$ 0.3
Standard Deviation of Y $\sigma_Y$ $2\sigma_X$
Standard Deviation of X $\sigma_X$ $\sigma_X$
Regression Coefficient (Y on X) $b_{YX}$ $r (\sigma_Y / \sigma_X)$
Angle with X-axis $\theta$ $\tan^{-1}(b_{YX})$

Revision Table: Regression Line Concepts

Concept Formula Meaning
Regression Line of Y on X $Y - \bar{Y} = b_{YX}(X - \bar{X})$ Equation predicting Y from X
Slope of Y on X Line $b_{YX}$ Change in Y for a unit change in X
Formula for $b_{YX}$ $r \frac{\sigma_Y}{\sigma_X}$ Relates correlation and standard deviations to the slope
Angle with X-axis $\tan \theta = b_{YX}$ Geometrical interpretation of the slope
Regression Line of X on Y $X - \bar{X} = b_{XY}(Y - \bar{Y})$ Equation predicting X from Y
Slope of X on Y Line $b_{XY}$ Change in X for a unit change in Y
Formula for $b_{XY}$ $r \frac{\sigma_X}{\sigma_Y}$ Relates correlation and standard deviations to the slope

Additional Information on Regression and Correlation

Correlation Coefficient (r): This value measures the strength and direction of a linear relationship between two variables, X and Y. It ranges from -1 to +1. A value of 0.3 indicates a weak positive linear relationship.

Regression Coefficients ($b_{YX}$ and $b_{XY}$): These are measures of the average functional relationship between variables. $b_{YX}$ tells us how much Y changes for a unit change in X, and $b_{XY}$ tells us how much X changes for a unit change in Y. They are generally not equal unless $\sigma_X = \sigma_Y$.

Relationship between Regression Coefficients and Correlation: The correlation coefficient $r$ is the geometric mean of the two regression coefficients, provided they have the same sign:

$$r^2 = b_{YX} \times b_{XY}$$

The sign of $r$, $b_{YX}$, and $b_{XY}$ is always the same, indicating the direction of the linear relationship (positive or negative).

Angle between Regression Lines: The two regression lines (Y on X and X on Y) intersect at the point $(\bar{X}, \bar{Y})$. The angle between these two lines is given by:

$$\tan \phi = \frac{1 - r^2}{r} \frac{\sigma_X \sigma_Y}{\sigma_X^2 + \sigma_Y^2} \quad \text{or} \quad \tan \phi = \frac{b_{XY} - b_{YX}}{1 + b_{YX} b_{XY}}$$

If the correlation is perfect ($|r|=1$), the two regression lines coincide, and the angle between them is 0. If the variables are uncorrelated ($r=0$), the regression lines are perpendicular, and the angle between them is 90 degrees ($\tan \phi$ would be undefined). In this question, $r=0.3$, which is between 0 and 1, so the lines will not be perpendicular or coincident.

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Similar Questions

  1. The coefficients of the regression β X|y and β Y|x , are known, The coefficient of correlation equals: 

  2. Which option is correct for the correlation ratio E 2?

  3. The multiple correlation coefficient R 1,23 as compared to any simple correlation coefficients between the distinct variable X 1 ,X 2, and X 3is

  4. The correlation coefficient between two variables X and Y is 0.4. The correlation coefficient between 2X and (-Y) will be:

  5. The coefficient of correlation between two variables X and Y is 0.48. The covariance is 36. The variance of X is 16. The standard deviation of Y is:

  6. If the regression line of Y on X is Y = 30 - 0.9X and the standard deviations are S x= 2 and S y= 9, then the value of the correlation coefficient r xy is :

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

  8. Suppose r xy is the correlation coefficient between two variables X and Y
    where s.d.(X) = s.d.(Y). If θ is the angle between the two regression lines of Y on X and X on Y then:

  9. 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:

  10. The limit of multiple correlation coefficient R 1.23 are:


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. Consider two exponentially distributed random variables X and Y, both having a mean of 0.50. Let Z = X + Y and r be the correlation coefficient between X and Y. If the variance of Z equals 0, then the value of r is _______ (round off to 2 decimal places).

  4. 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

  5. In which conditions, Karl Pearson's correlation coefficient can be calculated ?
    A. If means of both the variables are equal
    B. If one variable is measured in interval scale and another is measured in ordinal scale
    C. If there is linear relationship between two variables
    D. If data are obtained in interval or ratio scale for both the variables
    E. If direction of relationship between two variables is known
    Choose the most appropriate answer from the options given below :
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