Correlation MCQs Class 11 Economics
Correlation MCQs Class 11 Economics
Class: 11 | Subject: Economics
Section: 7 – Correlation
Topic: Correlation MCQs Class 11 Economics
Based on CBSE Board Examination Pattern
Section: 7 – Correlation
Topic: Correlation MCQs Class 11 Economics
Based on CBSE Board Examination Pattern
Instructions: These Multiple Choice Questions (MCQs) are designed strictly as per the NCERT syllabus, making them ideal for CBSE Class 11 Board Examination preparation.
Q1. Correlation refers to:
Answer: B
Correlation measures the degree and direction of relationship between two variables. It does not necessarily imply cause-and-effect but only shows association.
Correlation measures the degree and direction of relationship between two variables. It does not necessarily imply cause-and-effect but only shows association.
Q2. The value of correlation coefficient lies between:
Answer: B
Karl Pearson’s coefficient of correlation always lies between –1 and +1, indicating perfect negative to perfect positive correlation.
Karl Pearson’s coefficient of correlation always lies between –1 and +1, indicating perfect negative to perfect positive correlation.
Q3. When two variables move in the same direction, correlation is:
Answer: B
If both variables increase or decrease together, the relationship is positive correlation, e.g., income and consumption.
If both variables increase or decrease together, the relationship is positive correlation, e.g., income and consumption.
Q4. Perfect positive correlation coefficient is:
Answer: C
+1 indicates perfect positive correlation where variables move proportionately in the same direction.
+1 indicates perfect positive correlation where variables move proportionately in the same direction.
Q5. Scatter diagram is used to study:
Answer: B
A scatter diagram visually shows the relationship between variables by plotting paired data points.
A scatter diagram visually shows the relationship between variables by plotting paired data points.
Q6. If dots form a downward slope in scatter diagram, correlation is:
Answer: B
A downward trend indicates inverse relationship — as one increases, the other decreases.
A downward trend indicates inverse relationship — as one increases, the other decreases.
Q7. Zero correlation means:
Answer: B
Zero correlation indicates no systematic association between variables.
Zero correlation indicates no systematic association between variables.
Q8. Karl Pearson’s method measures:
Answer: B
It measures the strength and direction of linear relationship between two variables.
It measures the strength and direction of linear relationship between two variables.
Q9. Rank correlation method was developed by:
Answer: C
Spearman’s Rank Correlation is used when data are in ranks rather than actual values.
Spearman’s Rank Correlation is used when data are in ranks rather than actual values.
Q10. Correlation between price and demand is generally:
Answer: B
As price increases, demand decreases, showing inverse (negative) correlation.
As price increases, demand decreases, showing inverse (negative) correlation.
Q11. Correlation coefficient of 0.8 indicates:
Answer: B
A value close to +1 shows strong positive relationship.
A value close to +1 shows strong positive relationship.
Q12. If r = –1, the correlation is:
Answer: B
–1 indicates perfect inverse relationship between variables.
–1 indicates perfect inverse relationship between variables.
Q13. Correlation does NOT indicate:
Answer: C
Correlation measures association, not cause-effect relationship.
Correlation measures association, not cause-effect relationship.
Q14. When variables move proportionately, correlation is:
Answer: A
Proportionate movement indicates perfect correlation.
Proportionate movement indicates perfect correlation.
Q15. Correlation analysis is useful for:
Answer: D
Correlation helps in prediction, planning, and economic decision-making.
Correlation helps in prediction, planning, and economic decision-making.
Q16. Method based on ranking is:
Answer: C
Spearman’s method uses ranks rather than actual data values.
Spearman’s method uses ranks rather than actual data values.
Q17. If r = 0, dots appear:
Answer: B
Random scatter indicates no correlation.
Random scatter indicates no correlation.
Q18. Correlation is a statistical tool to measure:
Answer: B
It measures the degree of relationship between variables.
It measures the degree of relationship between variables.
Q19. Example of positive correlation:
Answer: B
Higher income generally leads to higher expenditure.
Higher income generally leads to higher expenditure.
Q20. Correlation coefficient symbol is:
Answer: C
‘r’ denotes Karl Pearson’s coefficient of correlation.
‘r’ denotes Karl Pearson’s coefficient of correlation.