Covariance i.e. Cov (X,Y) and standard deviations of different datasets are…

2024

Covariance i.e. Cov (X,Y) and standard deviations of different datasets are given. Estimate the correlation coefficients and arrange in increasing order:

A. Cov(X,Y) = 32, σₓ = 8, σᵧ = 7
B. Cov(X,Y) = 36, σₓ = 12, σᵧ = 5
C. Cov(X,Y) = 35, σₓ = 7, σᵧ = 8
D. Cov(X,Y) = 39, σₓ = 6, σᵧ = 13

Choose the correct answer:

  1. A.

    A, B, C, D

  2. B.

    B, C, D, A

  3. C.

    C, D, A, B

  4. D.

    D, A, B, C

Attempted by 6 students.

Show answer & explanation

Correct answer: D

Correlation formula:

r=Cov(X,Y)σxσyr = \frac{\text{Cov}(X,Y)}{\sigma_x \sigma_y}r=σx​σy​Cov(X,Y)​

Now calculate:

A: 32 / (8×7) = 32/56 ≈ 0.57
B: 36 / (12×5) = 36/60 = 0.60
C: 35 / (7×8) = 35/56 ≈ 0.625
D: 39 / (6×13) = 39/78 = 0.50

Increasing order:
D (0.50) < A (0.57) < B (0.60) < C (0.625)

Answer: D, A, B, C

Explore the full course: Nta Ugc Net Paper 1