In the following 3 questions, find example(s) if this is true or explain why thi

Question

In the following 3 questions, find example(s) if this is true or explain why this is false. You may either consider the cases when Y = aX, a multiple of X with a >0 or < 0, or the case when Y is not of the form aX.

(6) Is it possible that Covariance [X, Y] equals to (a) 0.5 (6%) (b) 5 (3%) for some random variables X and Y. Explain!

(7) Is it possible that the Correlation Coefficient rX, Y equals to (a) 0.5 (10%) (b) 5 (3%) for some random variables X and Y? Explain!

(8) Is it possible that the Correlation r X, Y = E[XY] equal to (a) 0.5 (6%) (b) 5 (3%) for some random variables X and Y? Explain!

Explanation / Answer

6) Yes, covariance can take any values so 6% and 3% are also possible

7) Yes, for same reason correlation can take any values, so 10% and 3% are also possible

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.