Correct Answer
✅ Option a — Positive correlation
All Options:
- APositive correlation
- BNegative correlation
- CZero correlation
- DCurvilinear correlation
Detailed Solution & Explanation
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 SyllabusExam Strategy Tip
This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.
More Questions from Correlation and Regression
The correlation co-efficient between X and Y is 0.8. If we add a number 10 in the X variable and subtracted 20 from Y variable, then the new correlation co-efficient will be -
When both the regression co-efficients are and , respectively, then correlation co-efficient between x and y is
For 9 college students group, the sum of squares of differences in ranks for History and Hindi marks was found to be 62, then what is the value of rank correlation co-efficient?
If then co-efficient of non-determination is
Given and are the two lines of regression x on y and y on x respectively. If the value of correlation co-efficient (r) is 0.5, then the value of k is
For a group of students, the sum of squares of differences in ranks for Maths and Physics marks are found to be 60, which is 120 times the value of rank correlation coefficient. How many students are there in the group?
Ready to Master Correlation and Regression?
Practice all 188 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.
Start Practicing — It's Free