• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

New BPP books are now available for September 2023 ACCA & FIA exams - get your discount code >>

Correlation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Correlation

  • This topic has 3 replies, 2 voices, and was last updated 1 week ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • May 24, 2023 at 9:52 am #684929
    VikasK
    Participant
    • Topics: 60
    • Replies: 87
    • ☆☆

    Hello Sir. Hope you are doing well.
    May I know. Whether Correlation assumes there is always a linear relationship between two variables?

    May 24, 2023 at 4:43 pm #684957
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 52481
    • ☆☆☆☆☆

    Correlation does not have to be linear.

    However in all of the arithmetic we do in the exam we always assume there to be linear correlation (the various formulae we use assume the correlation is linear).

    May 24, 2023 at 7:41 pm #684967
    VikasK
    Participant
    • Topics: 60
    • Replies: 87
    • ☆☆

    Indeed Sir, when it comes to forecasting techniques like High Low and Regression Analysis we assume that.

    1. But i encountered a question which said the r = 0.89. So statement was the linear relationship between the two variables are strong.

    Shall i say true or false. Because in Kaplan Study Text at one place they have shown it true while in another question that have shown it as false.

    2. Sir since we incorporate seasonal variations in case of Time Series Analysis, what means the forecast can be curved rather than being linear. So would the statement mentioned by you above be still valid

    May 25, 2023 at 8:45 am #684992
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 52481
    • ☆☆☆☆☆

    1. It seems reasonably strong but it depends on how many variables were considered. Just as I explain in my lectures.

    2. It is not the forecast that might be curved, it is the relationship that might be curved, It doesn’t change what I wrote before.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

Changes to the SBL exam from September 2023

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

 

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • Bleacheyj on Preference Shares – ACCA Financial Accounting (FA) lectures
  • John Moffat on Divisional Performance Measurement – ACCA Management Accounting (MA)
  • Bleacheyj on Preference Shares – ACCA Financial Accounting (FA) lectures
  • Amin97 on Investment property – ACCA Financial Reporting (FR)
  • Strongboy on Divisional Performance Measurement – ACCA Management Accounting (MA)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy