IIBA CBDA Exam - Topic 1 Question 1 Discussion

Actual exam question for IIBA's CBDA exam

Question #: 1
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 Raylene at Mar 05, 2024, 04:48 PM

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Micheline

4 months ago

Are we sure about that? Looks tricky!

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Shanda

4 months ago

Definitely Graph 1, no doubt about it!

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Troy

4 months ago

Wait, how can we tell just from the graphs?

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Gerri

4 months ago

I think it's actually Graph 3.

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Roslyn

5 months ago

Graph 1 shows zero covariance!

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Mollie

5 months ago

I’m a bit confused; I thought zero covariance meant the points would be tightly clustered around a line, but maybe it’s the opposite?

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Benedict

5 months ago

I practiced a similar question, and I think graph 2 could be the right answer because it looks like there's no correlation at all.

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Glory

5 months ago

I’m not entirely sure, but I think graph 1 might show zero covariance since the points seem scattered without a clear trend.

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Talia

5 months ago

I remember that zero covariance means there's no linear relationship, so I think it might be the graph that looks random.

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Sherron

5 months ago

Ugh, I'm not sure about this. Covariance can be tricky to visualize. I'll need to walk through each graph carefully and think about the mathematical definition of zero covariance.

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Doyle

5 months ago

I'm a bit confused by the different scatter plot options. I'll need to review my notes on covariance and how it's visually represented before answering this.

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Dominque

5 months ago

Okay, I think I've got this. The key is to identify the scatter plot that shows no linear relationship between the variables, which would indicate zero covariance.

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Dianne

5 months ago

Hmm, this looks like a tricky one. I'll need to think carefully about the properties of covariance and how that relates to the different scatter plot patterns.

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Celia

6 months ago

Graph C looks promising to me - the points seem to be randomly scattered with no clear linear trend, which should mean zero covariance. I'll double-check my reasoning, but I'm feeling confident about this one.

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Mari

6 months ago

Event Streams is definitely the way to go. It's the IBM Cloud service specifically built for real-time data processing and streaming.

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Alba

6 months ago

Okay, for this type of question, I'd start by thinking about where VMware would most likely host the official documentation. Based on that, I'd say the answer is C - docs.vmware.com seems like the most logical place for that kind of content.

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Maira

6 months ago

I'm leaning towards the idea of addressing objections for one group now and promising to meet others later. It seems practical, but I'm not completely certain.

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