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Question: The coefficient of correlation between two variables x and y is 0.5, their covariance is 16. If the ...

The coefficient of correlation between two variables x and y is 0.5, their covariance is 16. If the S.D of x is 4, then the S.D. of y is equal to

A

4

B

8

C

16

D

64

Answer

8

Explanation

Solution

We have, rxy=0.5,r_{xy} = 0.5, Cov(x,y)=16Cov(x,y) = 16. S.D of x i.e., σx=4\sigma_{x} = 4, σy=?\sigma_{y} = ?

We know that, r(x,y)=Cov(x,y)σx.σyr(x,y) = \frac{Cov(x,y)}{\sigma_{x}.\sigma_{y}}

0.5=164.σy0.5 = \frac{16}{4.\sigma_{y}}; ∴ σy=8\sigma_{y} = 8.