Question

If for two variable x and y, the covariance, variance of x and variance of y are 40, 16 and 256
respectively, what is the value of the correlation coefficient?
(a) 0.01
(b) 0.625
(c) 0.4
(d) 0.5​

Answer 1

Answer:

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