if the relation between x and u is 3x+4u+7=0 and the correlation coefficient between x and y is -0.6, then what is the correlation coefficient between u and y?
answer:-
-0.6
0.8
0.6
-0.8
2 Replies
Rajesh Jogani
(CA)
(60 Points)
Replied 08 June 2010
The correlation coefficient is independent of change of origin and of scale (only magnitude).
We rewrite the equation 3x + 4u + 7 = 0 as u = (-3/4) x - 7/3
Thus there is a perfect negative correlation between u and x.
So correlation between u and y = [ - 0.6 X (-3/4) ] / | -3/4|
= (- 0.6) X (- 1) = 0.6
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