Skip to content

CA Foundation · Quantitative Aptitude · Correlation and Regression

Which of the following is a recognised limitation of the scatter diagram method of studying correlation?

The scatter diagram method shows only the direction and approximate strength of the relationship and gives no exact numerical value of r. It does reveal positive or negative direction, needs no calculation of standard deviations and works with any pattern of data.

  1. AIt shows only the direction and rough strength of the relationship, not an exact numerical value of rCorrect
  2. BIt cannot show whether the relationship is positive or negative
  3. CIt can be used only when the data are perfectly linear
  4. DIt requires the computation of standard deviations of both variables

Explanation

A scatter diagram gives a visual idea of direction and approximate degree of association, but it cannot give a precise numerical measure of correlation. It does show positive or negative direction, works for any data pattern, and requires no standard deviation computation, so the other options are incorrect.

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