Question

Find the coefficient of correlation between and X and Y if covariance between X and Y is 15 and the variance of X and Y are respectively 10 and 25

Answer 1

0.95

Explanation:

`Correlation \ coefficient \ (r) = (covaraince \ between \ X \ and \ Y )/(SD_X * SD_Y )`

`Correlation \ coefficient \ (r) = (15 )/(10^(1/2) * 25^(1/2) )`

`Correlation \ coefficient \ (r) = (15 )/(3.162 * 5 )`

`Correlation \ coefficient \ (r) = (15 )/(15.81 )`

`Correlation \ coefficient \ (r) \simeq 0.95`