Correlation and RegressionMCQPYQ Nov. 19Question 3618 of 188
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If the plotted points in a scatter diagram lie from upper left to lower right, then correlation is

Options

APositive
BNegative
CZero
DNone of these
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Correct Answer

Option bNegative

All Options:

  • APositive
  • BNegative
  • CZero
  • DNone of these

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Detailed Solution & Explanation

**Interpretation of scatter diagram direction:** When points lie from **upper left to lower right**, it means: - As X\displaystyle X values increase (moving right), Y\displaystyle Y values decrease (moving down) - This indicates that X\displaystyle X and Y\displaystyle Y move in **opposite directions** **Conclusion:** When one variable increases and the other decreases, the correlation is **Negative**. - Points from lower-left to upper-right \displaystyle \Rightarrow Positive correlation (r>0\displaystyle r > 0) - Points from upper-left to lower-right \displaystyle \Rightarrow **Negative correlation** (r<0\displaystyle r < 0) - Points randomly scattered \displaystyle \Rightarrow Zero correlation (r=0\displaystyle r = 0) Note: The given `correct_option` field says 'c' (Zero), but this is incorrect. Upper-left to lower-right indicates negative correlation. Hence, **Option B** 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

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