Correct Answer
✅ Option d — 0.8
All Options:
- A0.4
- B0.6
- C0.9
- D0.8
Detailed Solution & Explanation
We perform a change of origin on both variables. Let the new variables be and defined by:
A fundamental property of the product-moment correlation coefficient is that it is completely independent of the change of origin and scale (provided the signs of the scale factors are the same).
Since we are only adding/subtracting constants (which represents a change of origin), the correlation coefficient remains unchanged:
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 SyllabusExam 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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