Correlation and RegressionMCQPYQ Dec 23Question 3646 of 188
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Pearson's Correlation coefficient between x\displaystyle x and y\displaystyle y is 2

Options

Acov(x,y)\displaystyle cov(x,y)
BfracSxSySxSy\displaystyle \\frac{S_x S_y}{S_x S_y}
C(SxSy)2\displaystyle (S_x S_y)^2
Dfraccov(x,y)SxSy\displaystyle \\frac{cov(x,y)}{S_x S_y}
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Correct Answer

Option dfraccov(x,y)SxSy\displaystyle \\frac{cov(x,y)}{S_x S_y}

All Options:

  • Acov(x,y)\displaystyle cov(x,y)
  • BfracSxSySxSy\displaystyle \\frac{S_x S_y}{S_x S_y}
  • C(SxSy)2\displaystyle (S_x S_y)^2
  • Dfraccov(x,y)SxSy\displaystyle \\frac{cov(x,y)}{S_x S_y}

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Detailed Solution & Explanation

**Definition of Pearson's Correlation Coefficient:** Karl Pearson's correlation coefficient r\displaystyle r is defined as the ratio of covariance between x\displaystyle x and y\displaystyle y to the product of their standard deviations: r=fractextCov(x,y)SxcdotSyr = \\frac{\\text{Cov}(x,y)}{S_x \\cdot S_y} where: - textCov(x,y)\displaystyle \\text{Cov}(x,y) = covariance between x\displaystyle x and y\displaystyle y - Sx\displaystyle S_x = standard deviation of x\displaystyle x - Sy\displaystyle S_y = standard deviation of y\displaystyle y **Verification of other options:** - Option (a): textCov(x,y)\displaystyle \\text{Cov}(x,y) alone — not standardized, has units - Option (b): fracSxSySxSy=1\displaystyle \\frac{S_x S_y}{S_x S_y} = 1 always — not a correlation formula - Option (c): (SxSy)2\displaystyle (S_x S_y)^2 — not related to correlation formula - Option (d): fractextCov(x,y)SxSy\displaystyle \\frac{\\text{Cov}(x,y)}{S_x S_y} — **correct formula for r\displaystyle r** (Note: The question text says "is 2" which seems like a typo or OCR error — the question is asking which formula gives 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

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