Arrange the correlation coefficients computed from the following information…

2024

Arrange the correlation coefficients computed from the following information on covariance i.e. cov(x,y) and standard deviation σx and σy, in increasing order.

A. cov(x,y)=18, σx=4, σy=9

B. cov(x,y)=15, σx=8, σy=3

C. cov(x,y)=16, σx=7, σy=4

D. cov(x,y)=21, σx=6, σy=5

Choose the most appropriate answer from the options given below:

Answer: A. A, C, B, DConceptFor two variables x and y, the Pearson correlation coefficient is r = cov(x,y)/(σx × σy). It standardizes covariance by the product of the standard…

  1. A.

    A, C, B, D

  2. B.

    B, C, D, A

  3. C.

    C, B, A, D

  4. D.

    D, B, A, C

Show answer & explanation

Correct answer: A

Concept

For two variables x and y, the Pearson correlation coefficient is r = cov(x,y)/(σx × σy). It standardizes covariance by the product of the standard deviations, so the resulting unit-free values can be compared.

Application

  1. For A: rA = 18/(4 × 9) = 1/2 = 0.500.

  2. For B: rB = 15/(8 × 3) = 5/8 = 0.625.

  3. For C: rC = 16/(7 × 4) = 4/7 ≈ 0.571.

  4. For D: rD = 21/(6 × 5) = 7/10 = 0.700.

Cross-check

An independent decimal comparison gives 0.500 < 0.571 < 0.625 < 0.700, which maps to A < C < B < D.

Data set

Correlation coefficient

Ascending position

A

0.500

1

C

0.571

2

B

0.625

3

D

0.700

4

Therefore, the increasing order is A, C, B, D.

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