Skip to content

CA Foundation · Quantitative Aptitude · Correlation and Regression

A scatter diagram of daily temperature (X) and sales of woollen jackets (Y) for a Ludhiana retailer shows points falling from upper left to lower right, clustered loosely around a downward-sloping line. Which statement is most appropriate?

The most appropriate statement is that there is a weak or moderate negative correlation. The downward pattern shows the variables move in opposite directions, while the loose scatter around the line shows the relationship is far from perfect.

  1. AThere is a weak or moderate negative correlationCorrect
  2. BThere is a perfect negative correlation
  3. CThere is a strong positive correlation
  4. DThe variables are uncorrelated

Explanation

The downward trend implies negative correlation. Loose clustering around the line means the relationship is not strong, so it is weak to moderate. Perfect correlation would need all points exactly on a line, and positive correlation would need an upward trend.

Did you get it right without looking?

One question tells you little. A timed set on Correlation and Regression shows your real accuracy, how long you take and where you lose marks.

Practise Correlation and RegressionFree diagnostic mock

More Correlation and Regression questions