Correlation and RegressionMCQMTP Nov 21Question 3628 of 188
All Questions

Below scatter diagram shows what type of correlation

Options

APerfect negative correlation
BNegative correlation
CPositive correlation
DPerfect positive correlation
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Correct Answer

Option cPositive correlation

All Options:

  • APerfect negative correlation
  • BNegative correlation
  • CPositive correlation
  • DPerfect positive correlation

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Detailed Solution & Explanation

**Identifying correlation type from scatter diagram:** Based on the question context (the scatter diagram referenced in MTP Nov 21), the diagram shows points that cluster from **lower-left to upper-right**, indicating: - As X\displaystyle X increases, Y\displaystyle Y also tends to increase - The relationship is positive but not perfect (points don't lie exactly on a line) - This is **positive correlation** (imperfect positive) **Types of correlation from scatter patterns:** - All points on upward line: Perfect positive (r=1\displaystyle r = 1) - Points clustering upward: Positive correlation (0<r<1\displaystyle 0 < r < 1) ✓ - Points clustering downward: Negative correlation (1<r<0\displaystyle -1 < r < 0) - All points on downward line: Perfect negative (r=1\displaystyle r = -1) - Random scatter: Zero correlation (r=0\displaystyle r = 0) 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

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