Positive & Negative Correlation MCQs
Positive & Negative Correlation – MCQs with Answers & Explanations
Class: 11th |
Subject: Economics (Statistics for Economics) |
Section: Correlation |
Topic: Positive & Negative Correlation
Board: CBSE Board Examinations
Board: CBSE Board Examinations
These Multiple Choice Questions (MCQs) are designed strictly as per the NCERT syllabus, making them ideal for CBSE Class 11 Board Examination preparation. Each question includes detailed concept‑clearing explanations.
1. When two variables move in the same direction, it is called:
Answer: B
Both variables increase or decrease together in positive correlation.
Both variables increase or decrease together in positive correlation.
2. Price and demand generally show:
Answer: B
Higher price reduces demand — inverse relationship.
Higher price reduces demand — inverse relationship.
3. Income and consumption show:
Answer: B
Higher income increases spending.
Higher income increases spending.
4. Downward sloping scatter indicates:
Answer: B
Inverse movement forms downward trend.
Inverse movement forms downward trend.
5. Upward scatter pattern shows:
Answer: B
Both variables rise together.
Both variables rise together.
6. Perfect positive correlation coefficient:
Answer: C
+1 indicates exact same movement.
+1 indicates exact same movement.
7. Perfect negative correlation coefficient:
Answer: B
Exact opposite movement.
Exact opposite movement.
8. Example of negative correlation:
Answer: C
Price rise lowers demand.
Price rise lowers demand.
9. Example of positive correlation:
Answer: A
More study increases marks.
More study increases marks.
10. If r > 0, correlation is:
Answer: B
Positive sign indicates same direction movement.
Positive sign indicates same direction movement.
11. If r < 0, correlation is:
Answer: B
Negative sign shows inverse relationship.
Negative sign shows inverse relationship.
12. Direction of correlation is shown by:
Answer: A
Sign (+/–) indicates direction.
Sign (+/–) indicates direction.
13. Strength depends on:
Answer: B
Higher absolute value → stronger correlation.
Higher absolute value → stronger correlation.
14. r = 0.8 indicates:
Answer: B
Close to +1 → strong positive.
Close to +1 → strong positive.
15. r = –0.7 indicates:
Answer: A
Close to –1 → strong negative.
Close to –1 → strong negative.
16. Correlation direction can be identified by:
Answer: A
Scatter slope shows direction.
Scatter slope shows direction.
17. If both variables fall together:
Answer: A
Same direction fall → positive.
Same direction fall → positive.
18. If one rises and other falls:
Answer: B
Opposite movement → negative.
Opposite movement → negative.
19. Zero correlation means:
Answer: C
Variables unrelated.
Variables unrelated.
20. Positive correlation line slopes:
Answer: B
Upward slope indicates positive relationship.
Upward slope indicates positive relationship.