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Forecasting

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Forecasting

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
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  • December 20, 2016 at 7:44 pm #364106
    poorunpriyodini
    Member
    • Topics: 4
    • Replies: 2
    • ☆

    The following four data pairs have been obtained: (1,5), (2,6), (4,9),(5,11).Without carrying out calculations, which of the following correlation coefficients best describes the relationship between x and y ?

    A.-0.98 B.-0.25 C.0.98 D.0.25

    why the answer is c?

    December 21, 2016 at 7:23 am #364125
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    Firstly, both sets of observations are increasing together. So the correlation is positive and therefore the answer has to be C or D.

    Secondly, just looking at the numbers they do seem to ‘fit together’ reasonably well, which means that the correlation will be closer to 1 than to 0.

    So the answer is C.

    Have you watched my free lectures on this? The lectures are a complete free course for Paper f2 and cover everything needed to be able to pass the exam well.

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