If two random variables are uncorrelated:
A) their correlation coefficient cannot be calculated
B) their correlation coefficient is zero
C) their correlation coefficient depends on the covariance
D) All of the above are incorrect.

Question

Quizplus · Accepted Answer

If two random variables are uncorrelated, it means that the covariance between them is zero. Therefore, the correlation coefficient, which is the covariance divided by the product of their standard deviations, will be zero.

If Two Random Variables Are Uncorrelated