Correlation and RegressionMCQPYQ June 24Question 3680 of 188
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Spearman's Correlation Coefficient is used to check

Options

AThe scattering of the data
BThe relationship in variables
CThe median of a data
DThe range of a data
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Correct Answer

Option bThe relationship in variables

All Options:

  • AThe scattering of the data
  • BThe relationship in variables
  • CThe median of a data
  • DThe range of a data

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Detailed Solution & Explanation

**Purpose of Spearman's Correlation Coefficient:** Spearman's rank correlation coefficient is used to: - **Measure the strength and direction of the relationship** between two variables - Particularly useful when data is ranked/ordinal or qualitative - Check whether as one variable increases, the other tends to increase or decrease **What it measures:** The monotonic relationship (linear or non-linear) between two ranked variables. **It is NOT used for:** - Measuring scattering (that's standard deviation or variance) - Finding median (that's a measure of central tendency) - Finding range (that's max - min) 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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