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Inequalities Involving Modulus Function

If cov X,Y ...

Question

If $c o v (X, Y) = 1, v a r (X) = 1, v a r (Y) = 4$ then $C o r (X, Y) =$

A

1

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B

2

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C

\frac{1}{2}

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D

\frac{1}{4}

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Solution

The correct option is A $\frac{1}{2}$
$C o r (X, Y) = \frac{C o v (X, Y)}{V a r (X) . V a r (Y)}$

$\Rightarrow C o r (X, Y) = \frac{1}{\sqrt{1} . \sqrt{4}} = \frac{1}{2}$

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