Question
If x and y are two random variables and a, b, c, d are
any numbers provided a ≠ 0, c ≠ 0, then correlation co-efficient between ax + b and cy + d is -Solution
If x and y are two random variables and a, b, c, d are any numbers provided a ≠ 0, c ≠ 0, then correlation co-efficient between ax + b and cy + d is r (ax + b, cy + d) = (ac/|ac|) r(x, y). r is independent of change of origin and scale but it is dependent on change of sign.
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