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The Correlation Between X and Y
A)cannot Be Negative Since cov(X,Y)var(X)var(Y)\frac { \operatorname { cov } ( X , Y ) } { \operatorname { var } ( X ) \operatorname { var } ( Y ) }

Question 8

Multiple Choice

The correlation between X and Y


A) cannot be negative since variances are always positive.
B) is the covariance squared.
C) can be calculated by dividing the covariance between X and Y by the product of the two standard deviations.
D) is given by corr(X, Y) = cov(X,Y) var(X) var(Y) \frac { \operatorname { cov } ( X , Y ) } { \operatorname { var } ( X ) \operatorname { var } ( Y ) }

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