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

0.625 is the value of the correlation coefficient.

Explanation:

Given that,

Variables = x & y

Covariance = 40

Variance of x = 16

Variance of y = 256

As we know that,

The relation between covariance and correlation coefficient:

Correlation(x, y) = Covariance(x, y)/$\sqrt{V(x) v (y)}$

Here,

[(V(x)) = 16

Variance of y(V(y)) = 256]

by putting the values in the above equation,

Cor(x,y) = 40/$\sqrt{16 * 256}$

∵ Cor(x,y) = 0.625

Learn more: Correlation coefficient

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