3. Suppose $E[X] = \frac{78}{36}$, $E[Y] = \frac{78}{36}$, $E[X^2] = \frac{192}{36}$, $E[Y^2] = \frac{192}{36}$, $E[XY] = \frac{168}{36}$ \\ Find (a) $\sigma_{X,Y} = Cov(X, Y) = ?$ \\ (b) $\rho_{X,Y} = Corr(X, Y) = ?$ \\ (c) based on the above results, what the association between X and Y?
Added by Timothy M.
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(a) Cov(X,Y) = E[XY] - E[X]E[Y] Given that E[X] = E[Y] = 36 and E[XY] = 36, we can substitute these values into the formula: Cov(X,Y) = 36 - 36*36 = 36 - 1296 = -1260 (b) Corr(X,Y) = Cov(X,Y) / sqrt(Var(X) * Var(Y)) Show moreā¦
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