Correlation and RegressionMCQPYQ Nov. 20Question 3619 of 188
All Questions

Scatter diagram does not help us to:

Options

AFind the type of correlation
BIdentify whether variables correlated or not
CDetermine the linear or non-linear correlation
DFind the numerical value of correlation coefficient
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Correct Answer

✅ Option d — Find the numerical value of correlation coefficient

All Options:

  • AFind the type of correlation
  • BIdentify whether variables correlated or not
  • CDetermine the linear or non-linear correlation
  • DFind the numerical value of correlation coefficient

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Detailed Solution & Explanation

**Capabilities and limitations of Scatter Diagram:** A scatter diagram is a graphical representation of bivariate data. It helps us: - **(a) Find the type of correlation:** Yes — we can identify positive, negative, or zero correlation from the pattern - **(b) Identify whether variables are correlated or not:** Yes — if points show a pattern, variables are correlated; if randomly scattered, they are not - **(c) Determine linear or non-linear correlation:** Yes — if points lie approximately along a straight line, correlation is linear; curved patterns indicate non-linear - **(d) Find the numerical value of correlation coefficient:** **No** — scatter diagram only gives a visual/qualitative picture; it cannot give the exact numerical value of r\displaystyle r To find the **numerical value** of the correlation coefficient, we need to use formulas like Karl Pearson's formula: r=fracsum(x−barx)(y−bary)sqrtsum(x−barx)2cdotsum(y−bary)2r = \\frac{\\sum(x-\\bar{x})(y-\\bar{y})}{\\sqrt{\\sum(x-\\bar{x})^2 \\cdot \\sum(y-\\bar{y})^2}} Hence, **Option D** 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.

Related Comparison Tables

Correlation vs Regression: Statistics for CA Foundation

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