Doubt regarding correlation coefficient question

classic Classic list List threaded Threaded
5 messages Options
Reply | Threaded
Open this post in threaded view
|

Doubt regarding correlation coefficient question

Gaurav
If the correlation between x and y is 0.3,what is the correlation between 2x+3/5 and 4y+7/11?
A)0.3
B)0.3/5*11
C)2*4*0.3/5*11
D)None of the above

Please also give the intuition behind the answer.
Reply | Threaded
Open this post in threaded view
|

Re: Doubt regarding correlation coefficient question

Amit Goyal
Administrator
Its (A).

Corr(2x + 3/5, 4y + 7/11) = Corr(2x, 4y) = Corr(x, y)  = 0.3
Reply | Threaded
Open this post in threaded view
|

Re: Doubt regarding correlation coefficient question

soimmoi
The consumption set
C= {(x,y) belongs to R^2 x>x0> 0 and y>yo> o} is bounded and convex?
Reply | Threaded
Open this post in threaded view
|

Re: Doubt regarding correlation coefficient question

Amit Goyal
Administrator
It is not bounded above. It is a convex set.
Reply | Threaded
Open this post in threaded view
|

Re: Doubt regarding correlation coefficient question

soimmoi
thank you so much, Sir.