Question

Find standard deviation of 4 series if coefficient of correlation =0.25, covariance between x and y =10,
Variance of x=64

Answer 1

Given:-

Cov(x,y)=30

V(x)=25

V(y)=144

As we know formula of Corelation coefficient is:−

Let r be Corelation coefficient of x,y

Then,

r=

V(x)×V(y)

Covariance(x,y)

on solving:−

⇒r=

25×144

30

⇒r=0.5