a. Use the general formula for the variance of a linear combination to write an expression for
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a. Use the general formula for the variance of a linear combination to write an expression for V(aX Y). Then let a sY /sX, and show that r 1. [Hint: Variance is always 0, and Cov(X, Y ) sX sY r.]
b. By considering V(aX Y ), conclude that r 1.
c. Use the fact that V(W) 0 only if W is a constant to show that r 1 only if Y aX b.
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Related Book For
Probability And Statistics For Engineering And The Sciences
ISBN: 9781133169345
8th Edition
Authors: Jay L Devore, Roger Ellsbury
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