NPTEL Data Science for Engineers Week 6 Assignment Answers 2024
1. What is the relationship between the variables, Coupon rate and Bid price?
- a. Coupon rate = 99.95 + 0.24 * Bid price
- b. Bid price = 99.95 + 0.24 * Coupon rate
- c. Bid price = 74.7865 + 3.066 * Coupon rate
- d. Coupon rate = 74.7865 + 3.066 * Bid price
✅ Answer :- c
✏️ Explanation: This is a standard linear regression output format, where Bid price is the dependent variable and Coupon rate is the independent variable.
2. Choose the correct option that best describes the relation between the variables Coupon rate and Bid price in the given data.
- a. Strong positive correlation
- b. Weak positive correlation
- c. Strong negative correlation
- d. Weak negative correlation
✅ Answer :- a
✏️ Explanation: Since the slope (3.066) is large and positive, and the R-squared value is high (from Q3), the correlation is strong and positive.
3. What is the R-Squared value of the model obtained in Q1?
- a. 0.2413
- b. 0.12
- c. 0.7516
- d. 0.5
✅ Answer :- c
✏️ Explanation: An R² value of 0.7516 means that ~75% of the variance in Bid price is explained by the Coupon rate.
4. What is the adjusted R-Squared value of the model obtained in Q1?
- a. 0.22
- b. 0.7441
- c. 0.088
- d. 0.5
✅ Answer :- b
✏️ Explanation: Adjusted R² is slightly lower than R² and accounts for the number of predictors. 0.7441 is close to R² = 0.7516.
5. Based on the model relationship obtained from Q1, what is the residual error obtained while calculating the bid price of a bond with coupon rate of 3?
- a. 10.5155
- b. -10.5155
- c. 6.17
- d. 0
✅ Answer :- a
✏️ Explanation:
Predicted Bid price = 74.7865 + 3.066 × 3 = 84.9845
If actual value is 95.5, then Residual = 95.5 – 84.9845 = 10.5155
6. Covariance is a better metric to analyze the association between two numerical variables than correlation.
- a. True
- b. False
✅ Answer :- b
✏️ Explanation: Covariance is not standardized and depends on the units of measurement. Correlation is better for comparing strength of relationships.
7. If R² is 0.6, SSR = 200 and SST = 500, then SSE is
- a. 500
- b. 200
- c. 300
- d. None of the above
✅ Answer :- c
✏️ Explanation: SST = SSR + SSE → 500 = 200 + SSE → SSE = 300
8. Linear Regression is an optimization problem where we attempt to minimize
- a. SSR (residual sum-of-squares)
- b. SST (total sum-of-squares)
- c. SSE (sum-squared error)
- d. Slope
✅ Answer :- c
✏️ Explanation: Linear regression minimizes SSE to best fit the line to the data points.
9. The model built from the data given below is Y = 0.2x + 60. Find the values for R² and Adjusted R²
- a. R² is 0.022 and Adjusted R² is −0.303
- b. R² is 0.022 and Adjusted R² is −0.0303
- c. R² is 0.022 and Adjusted R² is 0.303
- d. None of the above
✅ Answer :- a
✏️ Explanation: A low R² (0.022) and a negative Adjusted R² implies the model performs worse than a horizontal line (no predictor).