Economics (M.Phil./Ph.D.) 2016 Panjab University Entrance Exam With Answers

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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