Correlation and RegressionMCQPYQ July 21Question 3620 of 188
All Questions

If the data points of (X,Y)\displaystyle (X, Y) series on a scatter diagram lie along a straight line that goes downwards as X\displaystyle X- values move from left to right, then the data exhibit ---- correlation.

Options

ADirect
BImperfect indirect
CIndirect
DImperfect direct
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option cIndirect

All Options:

  • ADirect
  • BImperfect indirect
  • CIndirect
  • DImperfect direct

Ad

Detailed Solution & Explanation

**Analyzing the scatter diagram pattern:** When data points lie **along a straight line that goes downwards** as X\displaystyle X moves from left to right: - As X\displaystyle X increases, Y\displaystyle Y decreases - The points lie **perfectly** on a downward-sloping straight line - This means correlation coefficient r=1\displaystyle r = -1 (perfect negative correlation) **Terminology:** - Direct/Positive correlation: variables move in same direction - Indirect/Negative correlation: variables move in opposite directions - Perfect correlation: all points lie exactly on a straight line - Imperfect correlation: points roughly follow a trend but not exactly on a line Since all points lie **along a straight line** (perfect) and the line goes **downward** (negative/indirect), this is **perfect indirect (negative) correlation**. The option "Indirect" (Option C) refers to negative/indirect correlation, which is the correct classification here (perfectly indirect). Hence, **Option C** 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

Related Comparison Tables

More Questions from Correlation and Regression

Ready to Master Correlation and Regression?

Practice all 188 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free