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IIBA Exam CBDA Topic 1 Question 14 Discussion

Actual exam question for IIBA's CBDA exam
Question #: 14
Topic #: 1
[All CBDA Questions]

A data scientist is analyzing a dataset to determine if there is a strong relationship between two variables. A measure of covariance is done. Which of the following graphs indicate Zero Covariance between variables?

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Suggested Answer: C

Covariance measures the directional relationship between the returns on two assets. A positive covariance means that asset returns move together while a negative covariance means they move inversely. Zero covariance indicates that the returns on the two assets move independently of each other. In the context of a scatter plot, zero covariance is represented by a plot where the points do not show any upward or downward trend but are rather scattered randomly on the graph with no discernible pattern.

Graph 4 displays such a pattern where there is no apparent relationship between the variables on the x and y axes, indicating that there is zero covariance between them.


by Solange at Jun 20, 2024, 06:24 PM

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Adelina
4 months ago
I disagree with Chantell, I think the answer is B) 1 as the points in graph 1 are spread out evenly suggesting zero covariance.
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Chantell
4 months ago
I believe the answer is A) 2, because the points in graph 2 are clustered together showing a strong relationship.
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Ressie
4 months ago
Option B, baby! That graph is so straight, it makes my ruler look crooked.
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Deeanna
3 months ago
I agree, B is the one that shows zero covariance.
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Geraldo
3 months ago
Yeah, B looks like it has zero covariance. The other graphs have some slope to them.
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Andrew
3 months ago
I think it's B too. That line is perfectly horizontal.
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Aron
3 months ago
Definitely B, the other graphs have some sort of pattern but B is just a straight line.
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Wilda
4 months ago
Yeah, B looks like it has zero covariance between the variables.
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Art
4 months ago
I think it's B too. That line is perfectly straight.
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Jenelle
4 months ago
I agree with Sharen, because in graph 1 the points are scattered randomly indicating zero covariance.
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Sharen
4 months ago
I think the answer is B) 1.
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Yuonne
5 months ago
Hmm, this is a tough one. But I'm gonna have to go with C. That graph looks like it's on a diet - zero covariance all the way!
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Janna
5 months ago
I'm going with option D. That graph looks straight out of a geometry textbook, just the way I like it.
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Juan
4 months ago
Yeah, option D shows no clear pattern. It's probably zero covariance.
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Mozell
4 months ago
I think it's option D too. The points seem to be scattered randomly.
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Jaclyn
4 months ago
Yeah, option D seems to show zero covariance between the variables.
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Armando
4 months ago
I think it's option D too. It looks like a perfect diagonal line.
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Alex
5 months ago
Graph 4 clearly shows zero covariance between the variables. It's a perfect circle, baby!
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Loren
4 months ago
I agree with Tamesha, it's C) 4
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Tamesha
4 months ago
No, I believe it's B) 1
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Tamie
4 months ago
I think the answer is C) 4
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