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Question

If a,b,h,k are constants, while U and V are U=X-ah,V=Y-bk, then


A

Cov(X,Y)=Cov(U,V)

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B

Cov(X,Y)=hkCov(U,V)

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C

Cov(X,Y)=abCov(U,V)

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D

Cov(U,V)=hkCov(X,Y)

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Solution

The correct option is B

Cov(X,Y)=hkCov(U,V)


Explanation for the correct option:

Given, U=X-ah,V=Y-bk

X=hU+a,Y=kV+b

Cov(X,y)=hkCov(U,v) (AX+B,CY+D)=ACCov(x,y)

Hence, Option ‘B’ is Correct.


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