Correlation coefficient of two random variables

1. How do you find the correlation coefficient of two random variables?
2. What is the correlation coefficient of the two variables?
3. What does the correlation measure between two random variables?
4. How do you find the correlation between two variables?

How do you find the correlation coefficient of two random variables?

2 The correlation of X and Y is the number defined by ρXY = Cov(X, Y ) σXσY . The value ρXY is also called the correlation coefficient. Theorem 4.5. 3 For any random variables X and Y , Cov(X, Y ) = EXY − µXµY .

What is the correlation coefficient of the two variables?

The correlation coefficient is measured on a scale that varies from + 1 through 0 to – 1. Complete correlation between two variables is expressed by either + 1 or -1. When one variable increases as the other increases the correlation is positive; when one decreases as the other increases it is negative.

What does the correlation measure between two random variables?

Correlation measures linearity between X and Y. If ρ(X,Y) = 0 we say that X and Y are “uncorrelated.” If two variables are independent, then their correlation will be 0. However, like with covariance.

How do you find the correlation between two variables?

The correlation coefficient is determined by dividing the covariance by the product of the two variables' standard deviations. Standard deviation is a measure of the dispersion of data from its average. Covariance is a measure of how two variables change together.