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Question: If the variances of two variables x and y are respectively 9 and 16 and their covariance is 8, then ...

If the variances of two variables x and y are respectively 9 and 16 and their covariance is 8, then their coefficient of correlation is

A

23\frac{2}{3}

B

832\frac{8}{3\sqrt{2}}

C

982\frac{9}{8\sqrt{2}}

D

29\frac{2}{9}

Answer

23\frac{2}{3}

Explanation

Solution

Coefficient of correlation

r=Cov(x,y)Var(x).Var(y)r = \frac{C ⥂ ov(x,y)}{\sqrt{Var(x)}.\sqrt{Var(y)}} = 8916r=23\frac{8}{\sqrt{9}\sqrt{16}} \Rightarrow r = \frac{2}{3}.