Skip to content

CA Foundation · Quantitative Aptitude · Correlation and Regression

Which of the following pairs of variables is most likely to show a negative correlation?

Price of a commodity and quantity demanded, with other factors constant, is the pair most likely negatively correlated. By the law of demand, a rise in price reduces quantity demanded, so the variables move in opposite directions, unlike income-expenditure, rainfall-output or height-weight pairs.

  1. AHousehold income and household expenditure on consumption
  2. BPrice of a commodity and quantity demanded, other factors constantCorrect
  3. CRainfall and agricultural output in a normal range
  4. DHeight and weight of adult men

Explanation

By the law of demand, when price rises the quantity demanded falls, so the two move in opposite directions, which is negative correlation. The other three pairs usually move in the same direction and show positive correlation.

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