Question:medium

The regression coefficient of Mumbai prices over Kolkata prices from the following table, is: 

 

 Mumbai (₹)Kolkata (₹)
Average price (per 5 kg)120 130
S.D.45
Correlation coefficient0.6
N (Sample size)100

Show Hint

Pay close attention to the wording "Y over X" or "Y on X". The variable mentioned first is the dependent variable (Y), and the one mentioned second is the independent variable (X). This determines which standard deviation goes in the numerator of the formula.
Updated On: Feb 18, 2026
  • 0.48
  • 0.40
  • 0.53
  • 0.60
Show Solution

The Correct Option is A

Solution and Explanation

Step 1: Concept Clarification:
The problem asks for the regression coefficient of Mumbai prices (Y) predicted by Kolkata prices (X), denoted as \(b_{YX}\). Mumbai is the dependent variable (Y), and Kolkata is the independent variable (X).

Step 2: Formula:
The regression coefficient \(b_{YX}\) is calculated as: \[ b_{YX} = r \frac{\sigma_Y}{\sigma_X} \] where \(r\) is the correlation coefficient, \(\sigma_Y\) is the standard deviation of Y, and \(\sigma_X\) is the standard deviation of X.

Step 3: Calculation:
From the data: - \(\sigma_Y\) (Mumbai) = 4 - \(\sigma_X\) (Kolkata) = 5 - \(r = 0.6\) Substituting these values: \[ b_{YX} = 0.6 \times \frac{4}{5} \] \[ b_{YX} = 0.6 \times 0.8 \] \[ b_{YX} = 0.48 \] The average prices and sample size are irrelevant to this calculation.
Step 4: Answer:
The regression coefficient of Mumbai prices over Kolkata prices is 0.48.
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