Correlation and RegressionMCQMTP May 19 Series IIQuestion 3624 of 188
All Questions

Correlation analysis aims at

Options

APredicting one variable for a given value of the other variable
BEstablishing relation between two variables
CMeasuring the extent of relation between two variables
DBoth (b) and (c).
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Correct Answer

Option dBoth (b) and (c).

All Options:

  • APredicting one variable for a given value of the other variable
  • BEstablishing relation between two variables
  • CMeasuring the extent of relation between two variables
  • DBoth (b) and (c).

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Detailed Solution & Explanation

**Purpose of Correlation Analysis:** **Correlation analysis** aims at studying the relationship between two variables: - **(b) Establishing relation between two variables:** Correlation tells us WHETHER a relationship exists between two variables and what type (positive/negative/zero) - **(c) Measuring the extent of relation:** Correlation coefficient r\displaystyle r measures the **strength** and **direction** of the linear relationship, ranging from 1\displaystyle -1 to +1\displaystyle +1 **Note:** Option (a) — "Predicting one variable for a given value of the other" — is the aim of **Regression analysis**, not correlation analysis. Correlation analysis does **both** (b) and (c): 1. It establishes/identifies the existence of a relationship 2. It quantifies the degree/extent of that relationship through r\displaystyle r 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.

Key Concepts to Understand

Related Comparison Tables

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