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IIBA CBDA Exam - Topic 1 Question 1 Discussion

Posted by Raylene on Mar 05, 2024 at 04:48 PM

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?

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.


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21 comments · newest first
MI
Micheline 11 months ago
Are we sure about that? Looks tricky!
SH
Shanda 11 months ago
Definitely Graph 1, no doubt about it!
TR
Troy 12 months ago
Wait, how can we tell just from the graphs?
GE
Gerri 12 months ago
I think it's actually Graph 3.
RO
Roslyn 1 year ago
Graph 1 shows zero covariance!
MO
Mollie 1 year 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?
BE
Benedict 1 year 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.
GL
Glory 1 year ago
I’m not entirely sure, but I think graph 1 might show zero covariance since the points seem scattered without a clear trend.
TA
Talia 1 year ago
I remember that zero covariance means there's no linear relationship, so I think it might be the graph that looks random.
SH
Sherron 1 year 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.
DO
Doyle 1 year 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.
DO
Dominque 1 year 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.
DI
Dianne 1 year 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.
CE
Celia 1 year 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.
MA
Mari 1 year ago
Event Streams is definitely the way to go. It's the IBM Cloud service specifically built for real-time data processing and streaming.
AL
Alba 1 year 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.
MA
Maira 1 year 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.
NO
Nobuko 2 years ago
I agree with Billye, the lack of pattern in graph C) 4 indicates zero covariance.
BI
Billye 3 years ago
I think it's C) 4 because there is no relationship shown in the graph.
VE
Veronika 3 years ago
I disagree, I believe it's A) 2.
RU
Ruthann 3 years ago
I think the answer is B) 1.
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