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# MCQs on regression and correlation

1. Regression analysis is a statistical procedure for developing a mathematical equation that describes how
a. One independent and one or more dependent variables are relate
b. Several independent and several dependent variables are related
c. One dependent and one or more independent variables are related
d. None of the above answers is correct.

2. In a simple regression analysis (where Y is a dependent and X an independent variable), if the Y intercept is positive, then
a. there is a positive correlation between X and Y
b. there is a negative correlation between X and Y
c. if X is increased, Y must also increase
d. if Y is increased, X must also increase
e. None of the above answers is correct.

3. In regression analysis, the variable that is being predicted is the

a. dependent variable
b. independent variable
c. intervening variable
d. None of the above answers is correct.

4. A procedure used for finding the equation of a straight line that provides the best approximation for the relationship between the independent and dependent variables is the

a. correlation analysis
b. mean squares method
c. least squares method
d. most squares method
e. None of the above answers is correct.

5. If the coefficient of determination is equal to 1, then the coefficient of correlation

a. must also be equal to 1
b. can be either -1 or +1
c. can be any value between -1 to +1
d. must be -1
e. None of the above answers is correct

6. Explain the difference between cross-sectional data and time series data.

#### Solution Summary

Answers are provided with explanation for right choices

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