Correlation and RegressionMCQPYQ May 18Question 3615 of 188
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If the plotted points in a scatter diagram are evenly distributed, then the correlation is

Options

AZero
BNegative
CPositive
D(a) or (b)
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Correct Answer

✅ Option a — Zero

All Options:

  • AZero
  • BNegative
  • CPositive
  • D(a) or (b)

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Detailed Solution & Explanation

When the plotted points in a scatter diagram are evenly distributed (no pattern, no tendency to move together or in opposite directions), it indicates the absence of any linear relationship between the variables. **Reasoning:** - If points cluster from lower-left to upper-right ⇒\displaystyle \Rightarrow Positive correlation - If points cluster from upper-left to lower-right ⇒\displaystyle \Rightarrow Negative correlation - If points are evenly/randomly distributed with no discernible pattern ⇒\displaystyle \Rightarrow Zero correlation (no linear relationship) Evenly distributed points show that as X\displaystyle X increases, Y\displaystyle Y shows no consistent tendency either to increase or decrease. The correlation coefficient r≈0\displaystyle r \approx 0. Hence, **Option A** is the correct answer.

About This Chapter: Correlation and Regression

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Correlation Coefficient, Regression Equations

This chapter covers Correlation Coefficient, Regression Equations and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

Key Concepts to Understand

Correlation

A statistical measure that expresses the extent to which two variables are linearly related.

Related Comparison Tables

Correlation vs Regression: Statistics for CA Foundation

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