Homework Answers
Since, positive values of covariance indicates positive association (linear) between the variables x and y,
option d is correct.
By defininion, r=Cov(x,y)/(Sd(x)*Sd(y)) and -1<r<1, then option d is correct as r can not be larger than 1.
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Positive values of covariance indicate Select one: a positive vaffance of the x values O b....
4.he sample correlation coefficient between X and Y, rxy Sx/Sx S where S-the covariance between X...
4.he sample correlation coefficient between X and Y, rxy Sx/Sx S where S-the covariance between X and Ys Σ(X-XM) (-Yu)/ n-1 Sx the standard deviation of X and Sy the standard deviation of Y I) If the covariance is positive, the correlation coefficient must be positive: True or False? ii) If the covariance is negative, the correlation coefficient must be positive: True or False? a) ii) The correlation coefficient must lie between 0 and 1. True or False? v)lf the...
Find the covariance and correlation coefficient for the following sets of data. Select the answers equal...
Find the covariance and correlation coefficient for the following sets of data. Select the answers equal to or closest to your results. X: 50 44 47 40 54 Y: 10 13 95 7 Cov What does each measure tell you? Check all that apply. The covariance tells you that there is a weak or nonexistent linear relationship between X and Y The covariance and correlation coefficient tell you that there is a positive linear relationship between X and Y. The...
x 7 10 8 4 3 y 8 11 9 5 4 a. Calculate the covariance...
x 7 10 8 4 3 y 8 11 9 5 4 a. Calculate the covariance between the variables. (Negative value should be indicated by a minus sign. Round your intermediate calculations to 4 decimal places and final answer to 2 decimal places.) b-1. Calculate the correlation coefficient. (Round your intermediate calculations to 4 decimal places and final answer to 2 decimal places.) b-2. Interpret the correlation coefficient. There is _____ no, a weak negative, a weak positive, a strong...
The correlation between X and Y cov (Xy) var (X)var(Y O B. O c. O D....
The correlation between X and Y cov (Xy) var (X)var(Y O B. O c. O D. is given by corr (X.Y) is the covariance squared. can be calculated by dividing the covariance between X and Y by the product of the two standard deviations. cannot be negative since variances are always positive. l T-Mobile LTE 10:18 PM mathxl.com MIT ADEIS Cl Quancitative Mechods for Finance Cipring 2019 Homework: Homework 1 Scores 0 of 1 pt Review Concept 2.5 Hw score:...
The correlation coefficient, rho: Select one: a. None of the given answers. b. Has the same...
The correlation coefficient, rho: Select one: a. None of the given answers. b. Has the same sign as covariance, and is normalized between negative infinity and positive infinity. c. Has the opposite sign as the covariance and is non-normalized. d. Has the opposite sign as covariance and is normalized between -1 and 1.
b) Show that x, -x)-o a) Suppose Y =-X . Show in a diagram this function,...
b) Show that x, -x)-o a) Suppose Y =-X . Show in a diagram this function, what will be the correlation coefficient between X and Y? 4 the correlation coefficient must b) i) If the covariance between two variables is be positive. True or False? suggest? i) If the covariance between two variables is zero, what does it 5 a) Define mutually exclusive events and independent events bi) For two events A and B (which are not mutually exclusive) complete...
a. Compute the sample covariance. 112.255 (Round to three decimal places as needed.) b. Compute the...
a. Compute the sample covariance. 112.255 (Round to three decimal places as needed.) b. Compute the coefficient of correlation. r= 1.000 (Round to three decimal places as needed.) c. How strong is the relationship between X and Y? Explain. A. The variables X and Y have a perfect negative correlation because all points fall on a straight line with a negative slope. B. The variables X and Y have a perfect positive correlation because all points fall on a straight...
Click here to view the data set. Click here to view the critical values table. i...
Click here to view the data set. Click here to view the critical values table. i Data set o LLLL 10 10 x y 2 4 4 8 6 10 6 13 7 19 (b) By hand, compute the correlation coefficient. The correlation coefficient is r= (Round to three decimal places as needed.) Print Done (c) Determine whether there is a linear relation between x and y. Because the correlation coefficient is and the absolute value of the correlation coefficient,...
Consider a data set consisting of values for three variables: x, y, and z. Three observations...
Consider a data set consisting of values for three variables: x, y, and z. Three observations are made on each of the three variables. The following table shows the values of x, y, z, x2, y2, z2, xy, yz, and xz for each observation. Observation x y z x2 y2 z2 xy yz xz 6 6 2 36 36 4 36 12 12 4 3 8 16 9 64 12 24 32 2 6 5 4 36 25 12 30...
(+4) Applications of the concepts of covariance and correlation have been extremely important in the field...
(+4) Applications of the concepts of covariance and correlation have been extremely important in the field of finance. The purpose of this question is to illustrate one such application, which is the value of maintaining a diversified portfolio. To that end, let X and Y denote the (unknown) future returns associated with two stocks. A stock is most attractive to an investor if its payoffs are expected to be high, and have low risk-that is, a high mean and low...
4.he sample correlation coefficient between X and Y, rxy Sx/Sx S where S-the covariance between X and Ys Σ(X-XM) (-Yu)/ n-1 Sx the standard deviation of X and Sy the standard deviation of Y I) If the covariance is positive, the correlation coefficient must be positive: True or False? ii) If the covariance is negative, the correlation coefficient must be positive: True or False? a) ii) The correlation coefficient must lie between 0 and 1. True or False? v)lf the...
Find the covariance and correlation coefficient for the following sets of data. Select the answers equal to or closest to your results. X: 50 44 47 40 54 Y: 10 13 95 7 Cov What does each measure tell you? Check all that apply. The covariance tells you that there is a weak or nonexistent linear relationship between X and Y The covariance and correlation coefficient tell you that there is a positive linear relationship between X and Y. The...
The correlation between X and Y cov (Xy) var (X)var(Y O B. O c. O D. is given by corr (X.Y) is the covariance squared. can be calculated by dividing the covariance between X and Y by the product of the two standard deviations. cannot be negative since variances are always positive. l T-Mobile LTE 10:18 PM mathxl.com MIT ADEIS Cl Quancitative Mechods for Finance Cipring 2019 Homework: Homework 1 Scores 0 of 1 pt Review Concept 2.5 Hw score:...
b) Show that x, -x)-o a) Suppose Y =-X . Show in a diagram this function, what will be the correlation coefficient between X and Y? 4 the correlation coefficient must b) i) If the covariance between two variables is be positive. True or False? suggest? i) If the covariance between two variables is zero, what does it 5 a) Define mutually exclusive events and independent events bi) For two events A and B (which are not mutually exclusive) complete...
a. Compute the sample covariance. 112.255 (Round to three decimal places as needed.) b. Compute the coefficient of correlation. r= 1.000 (Round to three decimal places as needed.) c. How strong is the relationship between X and Y? Explain. A. The variables X and Y have a perfect negative correlation because all points fall on a straight line with a negative slope. B. The variables X and Y have a perfect positive correlation because all points fall on a straight...
Click here to view the data set. Click here to view the critical values table. i Data set o LLLL 10 10 x y 2 4 4 8 6 10 6 13 7 19 (b) By hand, compute the correlation coefficient. The correlation coefficient is r= (Round to three decimal places as needed.) Print Done (c) Determine whether there is a linear relation between x and y. Because the correlation coefficient is and the absolute value of the correlation coefficient,...
Consider a data set consisting of values for three variables: x, y, and z. Three observations are made on each of the three variables. The following table shows the values of x, y, z, x2, y2, z2, xy, yz, and xz for each observation. Observation x y z x2 y2 z2 xy yz xz 6 6 2 36 36 4 36 12 12 4 3 8 16 9 64 12 24 32 2 6 5 4 36 25 12 30...
(+4) Applications of the concepts of covariance and correlation have been extremely important in the field of finance. The purpose of this question is to illustrate one such application, which is the value of maintaining a diversified portfolio. To that end, let X and Y denote the (unknown) future returns associated with two stocks. A stock is most attractive to an investor if its payoffs are expected to be high, and have low risk-that is, a high mean and low...
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