3.
If cov. (x,y) = covariance between X and Y, σx = Standard deviation of variable x and σy = standard deviation of variable y, then which of the following is the correct formula for Karl Pearson’s Coefficient of Correlation?
A:
σx σy / cov.(x,y)
B:
cov.(x,y) / σx σy
C:
σx cov.(x,y) / σy
D:
σy cov.(x,y) / σx
The answer is:
B