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If 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_
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