Question

If the correlation coefficient between two variables is 0.5 and the standard deviation of the variables is 5 and 10, respectively, then the sample covariance is approximately ...

	a.	25
	b.	50
	c.	250
	d.	Impossible to determine with any level of accuracy.

Answer 1

Answer
Correlation coefficient =covariance /(product of sandard deviations)
0.5=covariance /(5*10)
covariance =50*0.5
covariance =25
the covariance is 25

option 1

Answer 2

ANSWER :

OPTION a : 25

[ Correlation coefficient, r_xy =  Covariance_xy / (SD_x * SD_y)

=> 0.5 = Covariance_xy / (5 * 10)

=> covariance_xy = 0.5 * 5 * 10 = 25 ]