The correlation between X and Y
A)cannot be negative since variances are always positive.
B)is the covariance squared.
C)can be calculated by dividing the covariance between X and Y by the product of the two standard deviations.
D)is given by corr(X,
Y)= .

Question

The correlation between X and Y
A)cannot be negative since variances are always positive. 
B)is the covariance squared. 
C)can be calculated by dividing the covariance between X and Y by the product of the two standard deviations. 
D)is given by corr(X,
Y)= .

Quizplus · Accepted Answer

The formula for calculating the correlation coefficient between X and Y is given by dividing their covariance by the product of their standard deviations. Therefore, option C is the correct choice. Option A is incorrect because while the variances are always positive, the correlation between X and Y can be negative, positive, or zero. Option B is incorrect because the variance is not equal to the covariance squared. Option D is incorrect because the given expression is not a valid formula for calculating the correlation coefficient.

The Correlation Between X and Y