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Step Deviation Method to Calculate R

If the covari...

Question

If the covariance between two variables X and Y is 8 and variance of X and Y are respectively 25 and 36, find the correlation coefficient.

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Solution

$r = \frac{C o v . (X, Y)}{\sqrt{var (X)} \sqrt{var(Y)}} = \frac{8}{\sqrt{25} \sqrt{36}} = \frac{8}{5 \times 6} = 0.26$

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