What was the reported value of the correlation coefficient for international trade participation by a state & its prosperity in the Economic Survey of 2017-18?

Category: Miscellaneous Indian Gk

Hint: Recall the specific value reported in the Economic Survey of 2017-18.

Correct Answer: B) 0.70

Exam Relevance: UPSC, SSC, Banking Exams, State PSC

Difficulty: Moderate

Explanations:

The correlation coefficient is a statistical measure that quantifies the strength and direction of the relationship between two variables. In the context of the Economic Survey of 2017-18, the correlation coefficient was used to assess the relationship between a state's participation in international trade and its prosperity. The reported value of the correlation coefficient was 0.70, indicating a strong positive correlation.

A correlation coefficient ranges from -1 to 1. A value of 1 indicates a perfect positive correlation, meaning that as one variable increases, the other variable also increases. A value of -1 indicates a perfect negative correlation, meaning that as one variable increases, the other variable decreases. A value of 0 indicates no correlation between the variables.

In the Economic Survey, the correlation coefficient of 0.70 suggests that there is a strong positive relationship between a state's participation in international trade and its prosperity. This means that states with higher levels of international trade tend to have higher levels of prosperity. However, it is important to note that correlation does not imply causation. While there is a strong relationship between the two variables, it does not necessarily mean that one causes the other.

The Economic Survey of 2017-18 is a comprehensive document that provides an overview of the economic performance of India and its states. It includes various economic indicators and statistical data that are used to assess the economic health of the country. The correlation coefficient reported in the survey is one of the many statistical measures used to analyze the economic data.

Understanding the correlation coefficient and its interpretation is crucial for students preparing for competitive exams such as the UPSC, SSC, and banking exams. These exams often include questions that test the ability to interpret statistical data and understand economic indicators. Therefore, it is important to be familiar with the concept of correlation and its application in economic analysis.

Option Analysis:

Option A: This option is incorrect. The reported value of the correlation coefficient in the Economic Survey of 2017-18 was not 0.38. A value of 0.38 would indicate a weak positive correlation, which does not match the reported data.
Option B: This option is correct. The Economic Survey of 2017-18 reported a correlation coefficient of 0.70, indicating a strong positive relationship between a state's participation in international trade and its prosperity.
Option C: This option is incorrect. The reported value of the correlation coefficient was not -0.46. A negative value would indicate a negative correlation, which is not consistent with the reported data.
Option D: This option is incorrect. The reported value of the correlation coefficient was not 0.98. A value of 0.98 would indicate an extremely strong positive correlation, which is not consistent with the reported data.

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