alleryIf r = 0, the two variables are
APerfectly correlated
BInversely related
CIndependent
DUncorrelated
Answer & Solution
Correct answer: D. Uncorrelated
1. r = 0 indicates no linear association between x and y.
2. Variables can still be related non-linearly even when r = 0.
3. The standard interpretation is 'no linear correlation'.
4. So the variables are uncorrelated (not necessarily independent).
_Source: ICAI BoS Foundation Paper 3, Ch 17 'Correlation', p.5_
Keep practising Correlation and Regression
Browse all Correlation and Regression questions for CA Foundation, or explore more Quantitative Aptitude topics.
Related questions
Unlike covariance, the correlation coefficient has what property?Which statement about r is always true?All points satisfy y = 3 - 2x exactly. What is the value of r?Which correlation shows the strongest linear relationship?Judge A ranks 1,2,3,4,5 and judge B ranks the same entrants 2,1,4,3,5. Find rho.Two judges give identical rankings to four contestants. What is the rank correlation?For ten items the sum of squared rank differences is 33. Find the rank correlation.Ranks of five students in two tests give a sum of squared rank differences of 4. Find Spea