Problem No.

01 (a)

Line Graph Line graph is a form of graphical presentation that displays quantities information or illustrates relationship between two changing quantities (variables) with a line that connects a series of successive data points. It also called line chart. A grouped line graph compares a trend with one or more other trends, and shows if its rate of change is increasing, decreasing, fluctuating or remaining constant. Line graphs are the most versatile and most extensively used family of graphs.

Problem No. 01 (b)

Solution Data for line graphYear 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 At Current Prices 15839 16648 17800 18899 20936 22946 25716 At 1999-2000 Prices 15839 16133 16762 17075 18263 19297 20734

Line graph for the table is:

Line Graph
30000
25716

25000 20000 15000 10000 5000 0

16648 16133 17800 16762 18899

22946 20936 15839 15839 20734

17075

18263

19297

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

At Current Prices

At 1999-2000 Prices

Problem No. 02 (a)

Distinguish between Correlation & Regression Correlation and regression analysis are constructed under different assumptions, they furnish different types of information and it is not always clear as to which measure should be used in a given problem situation. The following are the points of difference between the two: In correlation analysis, we are primarily interested in the measurement of the strength or degree of linear relationship between two or more variables. On the other hand, in regression analysis, we try to estimate or predict the average value of one variable on the basis of the fixed values of the other variables.

 The cause and effect relation is clearly indicated in regression analysis. In correlation analysis, we try to find the degree of relationship between two variables and we cannot say that one variable is the cause and the other is effect.

Problem No. 02 (b)

Solution Categories listing textbooks were examined to discover the relationship between the cost of a book and number of pages it contains. The perusal gives the following data for ten books:

Pages 700 540 210 625 380 910 610 420 750 400

Prices (Rs.) 12 11 5 10 7 15 9 8 12 9

Scatter diagram for above table is:

Scatter Diagram
16 14 12 Prices (Rs.) 10 8 6 4 2 0 0 200 400 Pages 600 800 1000 Prices (Rs.) 5 7 9 8 11 10 9 12 12 15

To obtain the regression line for estimating the price of a book a table is given below Pages
(xi)

Prices (Rs.)
(yi)

xiyi
8400 5940 1050 6250 2660 13650 5490 3360 9000 3600
xiyi= 59400
2

xi2
490000 291600 44100 390625 144400 828100 372100 176400 562500 160000
xi = 3459825

700 540 210 625 380 910 610 420 750 400
xi= 5545

12 11 5 10 7 15 9 8 12 9
yi= 98

We know, One of the important objective of regression analysis is to find estimates for a and b in the regression line y=a+bx. Here,

b=

= = = 0.013
And,

a=

-b

= = 9.8 0.013 = 9.8 7.21 = 2.59

So, the estimate regression line is

554.5

= 2.59 + 0.013x
Here again, The estimate for the price of containing 500 pages is

y = a + bx
= 2.59 + 0.013 = 2.59 + 6.5 = 9.09
Ans: 9.09

500

Problem No. 03 (a)

Solution Coefficient of correlation between the percentage yields on securities and wholesale price indices for certain years % Yield on Index No Security of Wholesale (xi) Prices (yi)

Year

x i yi

x i2

yi 2

2002 2003 2004 2005 2006 2007 2008 Total

5 5.1 5.2 .9 4.8 5.3 5.4

140 138 126 132 140 135 132

700 703.8 655.2 646.8 672 715.5 712.8

25 26.01 27.04 24.01 23.04 28.09 29.16

19600 19044 15876 15876 17424 19600 17424

xi= 35.7 yi= 943 xiyi=4806.1 xi2= 182.35 yi2= 127193

Now,

r=

= = = = =

= - 0.45
We concluded that there is a strong negative correlation between the percentage yield on securities and wholesale prices. Ans: -0.45