Questions: Two variables are said to display correlation if
- both measure the same thing.
- one occurs before the other.
- they are caused by the same factor.
- they vary together.
Transcript text: Two variables are said to display correlation if $\qquad$
both measure the same thing.
one occurs before the other.
they are caused by the same factor.
they vary together.
Solution
Solution Steps
Step 1: Calculate Covariance
The covariance between the variables \( X \) and \( Y \) is calculated as follows:
\[
\text{Cov}(X,Y) = 5.0
\]
Step 2: Calculate Standard Deviations
The standard deviations of \( X \) and \( Y \) are given by:
\[
\sigma_X = 1.58
\]
\[
\sigma_Y = 3.16
\]
Step 3: Calculate Correlation Coefficient
The correlation coefficient \( r \) is computed using the formula:
\[
r = \frac{\text{Cov}(X,Y)}{\sigma_X \sigma_Y}
\]
Substituting the values:
\[
r = \frac{5.0}{1.58 \times 3.16} = 1.0
\]
Final Answer
The correlation coefficient indicates a perfect positive correlation between the variables \( X \) and \( Y \). Thus, the answer is: