Please refer to MCQ Questions Chapter 7 Correlation Class 11 Economics with answers provided below. These multiple-choice questions have been developed based on the latest NCERT book for class 11 Economics issued for the current academic year. We have provided MCQ Questions for Class 11 Economics for all chapters on our website. Students should learn the objective based questions for Chapter 7 Correlation in Class 11 Economics provided below to get more marks in exams.

**Chapter 7 Correlation MCQ Questions**

Please refer to the following **Chapter 7 Correlation MCQ Questions Class 11 Economics** with solutions for all important topics in the chapter.

**MCQ Questions Answers for Chapter 7 Correlation Class 11 Economics**

**Question. The minimum limit of correlation under Karl Pearson’s method is**

(a) −1

(b) 0

(c) 1

(d) None of these

**Answer**

A

**Question. Correlation is an analysis of …… between two or more variables.**

(a) relationship

(b) covariation

(c) determination

(d) calculation

**Answer**

B

**Question. The coefficient of correlation is independent of**

(a) change of scale only

(b) change of origin only

(c) both change of scale and origin

(d) None of the above

**Answer**

C

**Question. If the dots in a scatter diagram fall on a narrow band, it indicates a ……….degree of correlation.**

(a) zero

(b) high

(c) low

(d)None of these

**Answer**

C

**Question. When the mean of series is a decimal number, then which method should be used for computing Karl Pearson’s coefficient of correlation?**

(a) Direct Method

(b) Short-cut Method

(c) Step Deviation Method

(d)None of these

**Answer**

B

**Question. If all the points lie on the same downward sloping line, the correlation is said to be**

(a) perfect correlation

(b) perfect positive correlation

(c) perfect negative correlation

(d) negative correlation

**Answer**

C

**Question. Scatter diagram can be used to indicate which of the following degrees of correlation?**

(a) Perfect positive correlation

(b) Perfect negative correlation

(c) No correlation

(d) All of the above

**Answer**

D

**Question. When two variables move together in the same direction, it is said to be**

(a) no correlation

(b) negative correlation

(c) positive correlation

(d) zero correlation

**Answer**

C

**Question. A modified version of Karl Pearson’s formula is **

**Answer**

B

**Question. Which of the following pair is correctly matched? **

**Codes**

(a) A–(i)

(b) B–(ii)

(c) C–(iii)

(d)None of these

**Answer**

C

**Question. Coefficient of correlation lies between**

(a) 0 and +1

(b) 0 and –1

(c) –1 and +1

(d) – 3 and +3

**Answer**

C

**Question. Statement I Correlation is a multivariate analysis. ****Statement II Partial correlation considers all other variables to be constant.****Alternatives**

(a) Statement I is correct and Statement II is incorrect

(b) Statement II is correct and Statement I is incorrect

(c) Both the statements are correct

(d) Both the statements are incorrect

**Answer**

C

**Question. Karl Pearson’s coefficient of correlation indicates the …… and also the degree of relationship between the two variables.**

(a) direction

(b) relation

(c) interpretation

(d)None of these

**Answer**

A

**Question. Which of the following techniques deals with the association between two or more variables?**

(a) Index number

(b) Correlation

(c) Dispersion

(d)None of these

**Answer**

B

**Question. Statement I Non-linear correlation is also called curvy linear correlation.****Statement II Numerical measure of correlation is called coefficient of determination.****Alternatives**

(a) Statement I is correct and Statement II is incorrect

(b) Statement II is correct and Statement I is incorrect

(c) Both the statements are correct

(d) Both the statements are incorrect

**Answer**

A

**Assertion–Reasoning MCQs**

**(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)****(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)****(c) Assertion (A) is false, but Reason (R) is true****(d) Both Assertion (A) and Reason (R) are false**

**Question. Assertion (A): Correlation analysis is a means for examining inter relationships systematically.****Reason (R): Causation explain the cause and effect relationship between variables.**

**Answer**

B

**Question. Assertion (A): Karl Pearson’s method is non-mathematical in nature.****Reason (R): Degree of correlation helps in identifying the nature of correlation between variables.**

**Answer**

C

**Question. Assertion (A): Sale of ice-cream increases during summer, shows positive correlation.****Reason (R): When two variables move in same direction, it shows positive correlation.**

**Answer**

B

**Question. Assertion (A): Broadly, there only two types of correlation i.e., positive and negative.****Reason (R): The correlation is said to be positive when the variables move together in the same direction, the correlation is negative when they move in opposite directions.**

**Answer**

B

**Case Based MCQs**

Coefficient of correlation is an important statistical tool which is used to measure the relationship between two variables. This is not only useful in the field of statistics but also used in other disciplines like Economics, Geography, Psychology. In the present time due to the outbreak of Covid-19 corona virus, demand has gradually come down in almost all areas. As per the latest estimates, demand for car has decreased after the nationwide lockdown is lifted in phased manner.

**Question. If one variable change exactly in the reverse direction of the other variable, ……….. should be the degree of correlation.**

(a) positive correlation

(b) negative correlation

(c) perfect positive correlation

(d) perfect negative correlation

**Answer**

D

**Question. Which method of calculating correlation uses actual mean?**

(a) Karl Pearson’s coefficient of correlation

(b) Scatter diagram method

(c) Spearman’s rank correlation method

(d) Both (a) and (c)

**Answer**

A

**Question. In perfect positive correlation, the value of ‘r’ is …… .**

(a) –1

(b) 0

(c) 1

(d) infinity

**Answer**

C

**Question. What will be the coefficient of correlation between demand for car and varied level of income due to nationwide lockdown?**

(a) Positive correlation

(b) Negative correlation

(c) Perfect positive correlation

(d) No correlation

**Answer**

A

**Question. The correlation between using mask and being injected by the virus will be**

(a) positive

(b) negative

(c) Not correlated

(d) Either (a) or (b)

**Answer**

B

**Question. Which of the following tools can be used to know the pattern of demand during lockdown?**

(a) Correlation

(b) Causation

(c) Both (a) and (b)

(d) Neither (a) nor (b)

**Answer**

B