Correlation and RegressionMCQMTP Nov 21Question 3658 of 188
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If the coefficient of correlation between x\displaystyle x and y\displaystyle y is 0.6\displaystyle 0.6. If x\displaystyle x and y\displaystyle y values are multiplied by 1\displaystyle -1, then coefficient of correlation will be

Options

A-0.6
B1/0.6\displaystyle 1/0.6
C0.6
D0.4
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Correct Answer

Option c0.6

All Options:

  • A-0.6
  • B1/0.6\displaystyle 1/0.6
  • C0.6
  • D0.4

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Detailed Solution & Explanation

**Effect of multiplying both variables by 1\displaystyle -1:** Given: rxy=0.6\displaystyle r_{xy} = 0.6 Let U=1cdotx\displaystyle U = -1 \\cdot x and V=1cdoty\displaystyle V = -1 \\cdot y **Using the transformation rule:** If U=ax\displaystyle U = ax and V=by\displaystyle V = by, then: rUV=fracababcdotrxyr_{UV} = \\frac{ab}{|ab|} \\cdot r_{xy} Here a=1\displaystyle a = -1 and b=1\displaystyle b = -1: ab=(1)(1)=1>0ab = (-1)(-1) = 1 > 0 rUV=frac11cdotrxy=1times0.6=0.6r_{UV} = \\frac{1}{|1|} \\cdot r_{xy} = 1 \\times 0.6 = 0.6 **Interpretation:** Multiplying **both** variables by 1\displaystyle -1 doesn't change the correlation coefficient because both signs cancel out in the formula. The correlation remains the same. Note: The given `correct_option` says 'b' (1/0.6\displaystyle 1/0.6), which is incorrect. When both x\displaystyle x and y\displaystyle y are multiplied by 1\displaystyle -1, r\displaystyle r remains unchanged at 0.6\displaystyle 0.6. 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

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