Reading 11: Correlation and Regression-LOS a, (Part 1)习题精选 center, interpret, 2010

土豆妮

Session 3: Quantitative Methods: Quantitative
Methods for Valuation
Reading 11: Correlation and Regression

LOS a, (Part 1): Calculate and interpret a sample covariance and a sample correlation coefficient.

 

 

 

Determine and interpret the correlation coefficient for the two variables X and Y. The standard deviation of X is 0.05, the standard deviation of Y is 0.08, and their covariance is ?0.003.

A) +0.75 and the two variables are positively associated.

B) ?0.75 and the two variables are negatively associated.

C) ?1.33 and the two variables are negatively associated

rosemarie

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土豆妮

Which of the following statements about linear regression is least accurate?

A) The independent variable is uncorrelated with the residuals (or disturbance term).

B) R2 = RSS / SST.

C) The correlation coefficient, ρ, of two assets x and y = (covariancex,y) × standard deviationx × standard deviationy.

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The correlation coefficient, ρ, of two assets x and y = (covariance_x,y) divided by (standard deviation_x × standard deviation_y). The other statements are true. For the examination, memorize the assumptions underlying linear regression!

土豆妮

Suppose the covariance between Y and X is 12, the variance of Y is 25, and the variance of X is 36. What is the correlation coefficient (r), between Y and X?

A) 0.400.

B) 0.160.

C) 0.013.

土豆妮

Suppose the covariance between Y and X is 12, the variance of Y is 25, and the variance of X is 36. What is the correlation coefficient (r), between Y and X?

A) 0.400.

B) 0.160.

C) 0.013.

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The correlation coefficient is: