Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

IIBA Exam CBDA Topic 4 Question 28 Discussion

Actual exam question for IIBA's CBDA exam
Question #: 28
Topic #: 4
[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?

Show Suggested Answer Hide Answer
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 Major at Dec 04, 2024, 02:31 PM

Limited Time Offer

25%

Off

Get Premium CBDA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Titus
3 months ago
I agree with Amos, option B) 1 seems to be the correct choice based on the definition of zero covariance.
upvoted 0 times
...
Walker
3 months ago
Covariance, schmovariance! I'm just here for the snacks. But if I had to choose, I'd say graph 4 is the one that's keeping its distance, like a shy introvert at a party.
upvoted 0 times
Dawne
2 months ago
Alesia: So, we all think it's graph 4 then?
upvoted 0 times
...
Marla
2 months ago
User 3: I agree, graph 4 seems to be the odd one out.
upvoted 0 times
...
Alesia
2 months ago
User 2: Yeah, graph 4 looks like it's not related at all.
upvoted 0 times
...
Hyun
2 months ago
User 1: I think graph 4 shows zero covariance.
upvoted 0 times
...
...
Cathrine
3 months ago
Hmm, let me see... Graph 4 looks like it's on a strict diet, no relationship whatsoever. That's the one I'm going with.
upvoted 0 times
Bobbye
3 months ago
User 2: Yeah, Graph 4 looks completely unrelated.
upvoted 0 times
...
Angella
3 months ago
User 1: I think Graph 4 shows zero covariance.
upvoted 0 times
...
...
Amos
3 months ago
But in a graph with zero covariance, the points should be scattered randomly, which is shown in option B.
upvoted 0 times
...
Dorothy
3 months ago
I disagree, I believe the answer is A) 2.
upvoted 0 times
...
Amos
3 months ago
I think the answer is B) 1.
upvoted 0 times
...
Lai
3 months ago
Ah, the classic covariance graph! It's like a dance between two variables, and graph 4 is the wallflower of the bunch - standing alone, not moving a muscle.
upvoted 0 times
Avery
3 months ago
D: Got it, thanks for the explanation!
upvoted 0 times
...
Staci
3 months ago
D: Yes, that's correct. Graph 4 indicates zero covariance between the variables.
upvoted 0 times
...
Shenika
3 months ago
C: So, the answer is C) 4.
upvoted 0 times
...
Vivienne
3 months ago
B: Yeah, graph 4 shows zero covariance.
upvoted 0 times
...
Milly
3 months ago
C: So, the answer is C) 4 then?
upvoted 0 times
...
Dulce
3 months ago
B: Yeah, I agree. Graph 4 shows zero covariance, just like a wallflower at a dance.
upvoted 0 times
...
Domitila
3 months ago
A: I think it's graph 4.
upvoted 0 times
...
Jamal
3 months ago
A: I think it's graph 4, it looks like there's no relationship between the variables.
upvoted 0 times
...
...

Save Cancel