(a)
Use the rules of expected value to show that
Cov(aX + b, cY + d) = ac Cov(X, Y).
...
Mathematics, 25.10.2021 09:10 yoyoyo42
(a)
Use the rules of expected value to show that
Cov(aX + b, cY + d) = ac Cov(X, Y).
(b)
Use part (a) along with the rules of variance and standard deviation to show that
Corr(aX + b, cY + d) = Corr(X, Y)
when a and c have the same sign.
(c)
What happens if a and c have opposite signs?
Answers: 1
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