CA Foundation Exam > CA Foundation Questions > If the coefficient of correlation between two...
Start Learning for Free
If the coefficient of correlation between two variables is 0.6, then the percentage of variation unaccounted for is
- a)60%
- b)40%
- c)64%
- d)36%
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
If the coefficient of correlation between two variables is 0.6, then t...
Explanation:
The coefficient of correlation measures the strength and direction of the linear relationship between two variables. It ranges from -1 to +1, where -1 indicates a perfect negative relationship, +1 indicates a perfect positive relationship, and 0 indicates no relationship.
In this question, the coefficient of correlation between two variables is 0.6, which indicates a moderate positive relationship between the variables. It means that as one variable increases, the other variable also tends to increase, but not necessarily at the same rate.
Percentage of variation unaccounted for:
The coefficient of correlation only measures the linear relationship between two variables. It does not tell us anything about the amount of variation in one variable that can be explained by the other variable. To calculate the percentage of variation unaccounted for, we need to square the coefficient of correlation and subtract it from 1.
Percentage of variation unaccounted for = (1 - r^2) x 100%
Where r is the coefficient of correlation.
In this question, the coefficient of correlation is 0.6, so the percentage of variation unaccounted for is:
(1 - 0.6^2) x 100% = 1 - 0.36 x 100% = 64%
Therefore, option C, 64%, is the correct answer. It means that 64% of the variation in one variable is not explained by the other variable. The remaining 36% is accounted for by the linear relationship between the variables.
The coefficient of correlation measures the strength and direction of the linear relationship between two variables. It ranges from -1 to +1, where -1 indicates a perfect negative relationship, +1 indicates a perfect positive relationship, and 0 indicates no relationship.
In this question, the coefficient of correlation between two variables is 0.6, which indicates a moderate positive relationship between the variables. It means that as one variable increases, the other variable also tends to increase, but not necessarily at the same rate.
Percentage of variation unaccounted for:
The coefficient of correlation only measures the linear relationship between two variables. It does not tell us anything about the amount of variation in one variable that can be explained by the other variable. To calculate the percentage of variation unaccounted for, we need to square the coefficient of correlation and subtract it from 1.
Percentage of variation unaccounted for = (1 - r^2) x 100%
Where r is the coefficient of correlation.
In this question, the coefficient of correlation is 0.6, so the percentage of variation unaccounted for is:
(1 - 0.6^2) x 100% = 1 - 0.36 x 100% = 64%
Therefore, option C, 64%, is the correct answer. It means that 64% of the variation in one variable is not explained by the other variable. The remaining 36% is accounted for by the linear relationship between the variables.
Free Test
FREE
| Start Free Test |
Community Answer
If the coefficient of correlation between two variables is 0.6, then t...
64
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
If the coefficient of correlation between two variables is 0.6, then the percentage of variation unaccounted for isa)60%b)40%c)64%d)36%Correct answer is option 'C'. Can you explain this answer?
Question Description
If the coefficient of correlation between two variables is 0.6, then the percentage of variation unaccounted for isa)60%b)40%c)64%d)36%Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If the coefficient of correlation between two variables is 0.6, then the percentage of variation unaccounted for isa)60%b)40%c)64%d)36%Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the coefficient of correlation between two variables is 0.6, then the percentage of variation unaccounted for isa)60%b)40%c)64%d)36%Correct answer is option 'C'. Can you explain this answer?.
If the coefficient of correlation between two variables is 0.6, then the percentage of variation unaccounted for isa)60%b)40%c)64%d)36%Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If the coefficient of correlation between two variables is 0.6, then the percentage of variation unaccounted for isa)60%b)40%c)64%d)36%Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the coefficient of correlation between two variables is 0.6, then the percentage of variation unaccounted for isa)60%b)40%c)64%d)36%Correct answer is option 'C'. Can you explain this answer?.
Solutions for If the coefficient of correlation between two variables is 0.6, then the percentage of variation unaccounted for isa)60%b)40%c)64%d)36%Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of If the coefficient of correlation between two variables is 0.6, then the percentage of variation unaccounted for isa)60%b)40%c)64%d)36%Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
If the coefficient of correlation between two variables is 0.6, then the percentage of variation unaccounted for isa)60%b)40%c)64%d)36%Correct answer is option 'C'. Can you explain this answer?, a detailed solution for If the coefficient of correlation between two variables is 0.6, then the percentage of variation unaccounted for isa)60%b)40%c)64%d)36%Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of If the coefficient of correlation between two variables is 0.6, then the percentage of variation unaccounted for isa)60%b)40%c)64%d)36%Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice If the coefficient of correlation between two variables is 0.6, then the percentage of variation unaccounted for isa)60%b)40%c)64%d)36%Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup