AQ4.7 - Question 5

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Mohit Kumar

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Nov 7, 2020, 1:29:52 PM11/7/20

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Hello,

Need some help with Question 5 from AQ4.7

If The covariance between two variables is positive. Then how is the correlation coefficient positive?

Thanks!

Mohit Kumar

Statistics 1 Support 1

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Nov 8, 2020, 2:07:08 AM11/8/20

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Hi,

Look at the formula of the correlation coefficient. It is defined as covariance divided by the product of standard deviations. Since standard deviation is always positive, hence when covariance is positive then the correlation coefficient must be positive.

Thanks,

Nitin Jha

Course support team

Mohit Kumar

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Nov 8, 2020, 4:31:29 AM11/8/20

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