32 Questions
What is the term used to describe the relationship between two variables where a 10% increase in one variable leads to a 5% decrease in another?
Limited elastic demand
If the price of a good increases by 10% and the demand decreases by 5%, what type of relationship exists between the two variables?
Limited elastic demand
What is the term used to describe a relationship between two variables where a change in one variable leads to a less than proportionate change in the other?
Limited elastic demand
If the price of a good increases by 5% and the demand decreases by 10%, what type of relationship exists between the two variables?
Limited elastic demand
What is the term used to describe a relationship between two variables where the coefficient of correlation is -1?
Perfect negative correlation
If two variables have a coefficient of correlation of 0.5, what can be inferred about their relationship?
They have a moderate positive correlation
What is the term used to describe a relationship between two variables where the coefficient of correlation is 0?
No correlation
If two variables have a coefficient of correlation of -0.8, what can be inferred about their relationship?
They have a strong negative correlation
What is implied by the absence of a causal relationship between sales and profit?
Other factors influence profit, not just sales.
What is the result of a regression analysis?
A correlation between two variables.
What is the purpose of regression analysis?
To identify the correlation between two variables.
What is the implication of a correlation between sales and profit?
Other factors influence profit, besides sales.
What is the significance of a correlation between two variables?
It indicates a statistical relationship between the variables.
What is the limitation of a correlation analysis?
It does not account for other influencing factors.
What is the purpose of identifying a correlation between two variables?
To predict the value of a dependent variable.
What is the implication of a lack of correlation between sales and profit?
There are other factors influencing profit, besides sales.
What is the relationship between two variables when we can determine the value of one variable by knowing the value of the other?
Mutual dependence
What is the purpose of correlation analysis?
To identify the strength and direction of the relationship between variables
What is the benefit of using correlation analysis?
It reduces the uncertainty in the prediction of one variable based on another
What is the type of correlation that is used to compare the correlation coefficient with a certain value?
r-PE correlation
What is the significance of correlation analysis in understanding the relationship between variables?
It helps to determine the strength and direction of the relationship between variables
What are the two types of correlation?
Positive and negative correlation
What is the type of correlation that is used to analyze the relationship between two variables while controlling for the effect of other variables?
Partial correlation
What is the classification of correlation based on the number of variables involved?
Simple, partial, and multiple correlation
What does a scatter diagram represent?
The direction of a positive and negative relationship
What happens to the correlation coefficient as the points move closer to the line?
It increases
What is the correlation coefficient when the points are scattered randomly?
0
What is the strength of the positive relationship when the points are close to the line?
Strong
What is the direction of the relationship when the correlation coefficient is negative?
Negative
What is the correlation coefficient when the points are in a perfect straight line?
1
What is the correlation coefficient when there is no relationship between the variables?
0
What is the purpose of a scatter diagram?
To identify the type of relationship
Study Notes
Course Overview
- TTM4C04: Business Statistics and Information Technology II
- Credits: 4
- Lecture hours: 5
- Objective: To provide an understanding of tourism, travel industry management, and computer applications in the context of information technology.
Module Objectives
- To understand the importance of statistical tools and techniques in business decision-making
- To apply statistical methods to analyze and interpret business data
- To use computer applications to visualize and present business data
Correlation Analysis
- Correlation analysis is used to identify the strength and direction of the relationship between two variables
- Coefficient of correlation (r) measures the degree of correlation between two variables
- Correlation coefficient values:
- r = 1: perfect positive correlation
- r = -1: perfect negative correlation
- r = 0: no correlation
- Types of correlation:
- Positive correlation: as one variable increases, the other variable also increases
- Negative correlation: as one variable increases, the other variable decreases
- No correlation: no relationship between the two variables
Interpreting Correlation Coefficients
- Strength of correlation:
- Strong correlation: r ≥ 0.7
- Moderate correlation: 0.3 ≤ r ≤ 0.7
- Weak correlation: 0.1 ≤ r ≤ 0.3
- No correlation: r ≤ 0.1
- Direction of correlation:
- Positive direction: r > 0
- Negative direction: r < 0
Scatter Diagrams
- A scatter diagram is a graphical representation of the relationship between two variables
- Uses:
- To identify the strength and direction of the correlation
- To detect patterns and outliers in the data
- Types of scatter diagrams:
- Positive scatter diagram: indicates a positive correlation
- Negative scatter diagram: indicates a negative correlation
- Random scatter diagram: indicates no correlation
This quiz covers the basics of tourism management, including the use of computers and information technology in the travel industry. It assesses the student's understanding of tourism statistics and information systems.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
