Correlation and RegressionMCQMTP June 24 Series IIIQuestion 3672 of 188
All Questions

The maximum value of correlation coefficient is

Options

A0\displaystyle 0
B1\displaystyle 1
C1\displaystyle -1
DNone of these
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Correct Answer

Option b1\displaystyle 1

All Options:

  • A0\displaystyle 0
  • B1\displaystyle 1
  • C1\displaystyle -1
  • DNone of these

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Detailed Solution & Explanation

**Range of correlation coefficient:** The correlation coefficient r\displaystyle r satisfies: 1leqrleq1-1 \\leq r \\leq 1 **Maximum value:** The maximum value of the correlation coefficient is r=+1\displaystyle r = +1, which corresponds to **perfect positive linear correlation** (all data points lie exactly on an upward-sloping straight line). **Minimum value:** The minimum value is r=1\displaystyle r = -1 (perfect negative linear correlation). So the maximum value of r\displaystyle r is boxed1\displaystyle \\boxed{1}. Hence, **Option B** 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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