Looks like the answer is not correct by Schweser Determine and interpret the correlation coefficient for the two variables X and Y. The standard deviation of X is 0.05, the standard deviation of Y is 0.08, and their covariance is 0.003. A) 0.75 and the two variables are negatively associated. B) 1.33 and the two variables are negatively associated. C) +0.75 and the two variables are positively associated. D) +1.33 and the two variables are positively associated. Your answer: C was incorrect. The correct answer was A) 0.75 and the two variables are negatively associated. The correlation coefficient is the covariance divided by the product of the two standard deviations, i.e. 0.003 divided by (0.08 × 0.05).
That’s probably in the errata.
on exam i would put A but A&C are correct.
How is A correct? positive covariance should mean they’re not negatively associated.
moxson why would you have chosen A here? Are the two variables negatively associated? I was thinking that since the sign of the correlation equation (covariance / stdev * stdev) is positive then they have a positive correlation.
sorry to repeat you Matt ^^ we were posting at the same time!
I think the problem may “-” sign is missing for covariance and for A& B choices. Basically, everywhere negative sign