Question
Download Solution PDFPearson's correlation coefficient = _________________. (S represents standard deviation)
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDF∴ The Karl Pearson's coefficient of correlation is denotted by r(x, y) is defined as
r(x, y) = cov(x,y)/√σx2 × √σy2
⇒ cov(x,y)/σx × σy
⇒ cov(x,, y)/SxSy
Important Points
Cov(x, y) = 1/n[∑(Xi – X̅)(Yi – Y̅)
Where
We know that covariance = σxy = 1/n[∑(Xi – X̅)(Yi – Y̅)
σx, σy or Sx and Sy denoted Standard deviation
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