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The Correlation Between X and Y A XX And YY By the Product of the Two Standard Deviations

Question 6

Short Answer

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 XX and YY by the product of the two standard deviations.
d. is given by corr⁡(X,Y)=cov⁡(X,Y)var⁡(X)var⁡(Y)\operatorname { corr } ( X , Y ) = \frac { \operatorname { cov } ( X , Y ) } { \operatorname { var } ( X ) \operatorname { var } ( Y ) } .

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