Which of the following equations shows the relationship between the correlation coefficient and the covariance: A) $\rho$_AB = $\sigma$_AB $\sigma$_A $\sigma$_B B) $\sigma$_AB = $\rho$_AB/$\sigma$_A$\sigma$_B C) $\sigma$_AB=$\rho$_AB$\sigma$_A $\sigma$_B D) $\rho$_AB = $\sigma$_A$\sigma$_B/$\sigma$_AB

Question

Quizplus · Accepted Answer

The correct relationship is $\sigma_{AB} = \rho_{AB} \sigma_A \sigma_B$, where $\sigma_{AB}$ is the covariance, $\rho_{AB}$ is the correlation coefficient, and $\sigma_A$ and $\sigma_B$ are the standard deviations of A and B, respectively.

Which of the Following Equations Shows the Relationship Between the Correlation