Correlation and RegressionPYQ Sept 25Question 4191 of 188
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If two variables move in the same direction i.e. an increase (or decrease) on the part of one variable introduces an increase (or decrease) on the part of the other variable, then the two variables are known to be

Options

APositive correlation
BNegative correlation
CZero correlation
DCurvilinear correlation
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Correct Answer

Option aPositive correlation

All Options:

  • APositive correlation
  • BNegative correlation
  • CZero correlation
  • DCurvilinear correlation

Detailed Solution & Explanation

Let us analyze the relationship between the directional movements of two variables:
1. **Correlation**: Represents the association or relationship between two variables.
2. **Positive Correlation**: If an increase in one variable leads to an increase in the other variable, or if a decrease in one variable leads to a decrease in the other variable (i.e., both variables move in the same direction), the correlation is said to be positive.
3. **Negative Correlation**: If the variables move in opposite directions (an increase in one leads to a decrease in the other, or vice versa), the correlation is negative.
4. **Zero Correlation**: If there is no linear relationship between the variables.
Since the question states that the variables move in the same direction, the variables exhibit a positive correlation.
Hence, **Option A** 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.

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