Question
Download Solution PDFIf the correlation between X and Y is 0.3, then correlation coefficient between 2X and 3Y is:
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is 0.3.
Key Points
- The correlation coefficient between 2X and 3Y is also 0.3.
- When a variable is multiplied by a constant, such as multiplying X by 2 and Y by 3, it does not affect the correlation coefficient between the two variables. The correlation coefficient is not affected by the change of scale or origin.
- The correlation coefficient measures the strength and direction of the linear relationship between two variables, and scaling or multiplying the variables by a constant does not change that relationship.
Hence if the correlation between X and Y is 0.3, the correlation coefficient between 2X and 3Y would still be 0.3.
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