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Question

If the correlation coefficient between x and y is 0.6, covariance is 27 and variance of y is 25, then what is the variance of x?

A
9/5
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B
81/25
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C
9
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D
81
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Solution

The correct option is A 81

Correlationcoefficient=cov(x,y)stddeviation(x)×stddeviation(y)

Let std deviation of x be x.

We have correlationcoefficient=0.6,cov(x,y)=27,stddeviation(y)=25=5

Substituting respective values

0.6=275×x

x=9

So variance of x is 92=81


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