Example 9: What is the portfolio standard deviation for a two-asset portfolio comprised of the following two assets if the correlation of their returns is 0.5?

Q: For perfect correlation, the coefficient of correlation should be +1 +1 -1

A: The Pearson correlation coefficient used to determine the relationship between two quantitative…

Q: A sample of typical undergraduate students is very likely to have a range of GPAs from 1.0 to 4.0,…

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Q: If there is a high negative correlation between the X and Y quality characteristics, it can be said…

A: Given  If there is a high negative correlation between the X and Y quality characteristics, it can…

Q: When the Pearson Product-Moment correlation is equal to -0.68, there is:       A downwards linear…

A: We have to choose the correct option for:- When the Pearson Product-Moment correlation is equal to…

Q: 1. State whether the scatter diagram shows strong positive correlation, weak positive correlation,…

A: Since we know that Positive correlation :- Both variable move in a same direction in other words as…

Q: If the correlation coefficient is close to -1, the linear relationship between two variables is very…

A: We have to check weather the given statement is True or False.

Q: If the value of the Pearson correlation is r = +1.00 or r = –1.00, then all data points in the…

A: #If the value of the Pearson correlation is r = +1.00 or r = –1.00, then all data points in the…

Q: How do you calculate a coefficient of correlation of two indexes’ returns?

A: Let the two indexes’ returns be A and B.The coefficient of correlation measures the degree to which…

Q: RSquare RSquare Adj Root Mean Square Error Mean of Response Observations (or Sum Wgts) 0.898583…

A: Scatter plot :  Dots are used in a scatter plot to show the values of two different numerical…

Q: What are the consequences of the presence serial correlation?

A: Introduction Statistics is a field which involves collection, arrangement and analysis of the data…

Q: Suppose you are going to invest equal amounts in three stocks. The annual return from each stock is…

A: Hi! Thank you for the question, As per the honour code, we are allowed to answer three sub-parts at…

Q: Suppose the following data set contains the monthly adjusted stock prices for technology company A,…

A: Correlation: By correlation, we mean the association or interdependence between two variables. If…

Q: If more years of education cause higher earnings, this does not necessarily imply that years of…

A: The correlation shows relationship between two variables.

Q: When can a correlation coefficient based on an observational study be used to support a claim of…

A: When can a correlation coefficient based on an observational study be used to support a claim of…

Q: Suppose that 39% of all patrons at Goldy's gym spend more than 10 hours a week at the gym. Goldy's…

A: Given that  n=60 , p=39%=0.39 , q=1-p=1-0.39=0.61 X~Binomial(n=60 , p=0.39) P=Probability Goldy's…

Q: Illustrate this statement "Endogenous variables are correlated with the error term in the equation…

A: In the theory of statistics, the endogenous variable in a statistical model can be obtained by the…

Q: Example 15. The coefficient of rank correlation of the marks obtained by 10 students in statistics…

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Q: 1. What is the probability that a correlation coefficient of +0.75 or less can arise in a sample of…

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Q: Consider two assets, X and Y, with expected returns X = 14.5% and Y = 13.8% and with standard…

A: Mean return of Portfolio X, µx = 14.5 Standard Deviation of Portfolio X, σX = 6.3 Mean return of…

Q: If there is no linear correlation, does this mean that there is no correlation at all?

A: We know that,  If x and two variables then there is only linear correlation between X and Y.…

Q: Because a partial correlation considers the influence of a third variable, it is possible to have a…

A: From the above question Because a partial correlation considers the influence of a third variable,…

Q: a. What is the probability that the indicator would be correct 36 or more times in 44 years? The…

A: Let us consider success as the event that the indicator is correct. Then, p=p(Success)=0.5. Here, if…

Q: ou work for an NFL team and you are evaluating a prospective new running back. You have a…

A: First, we will fit a linear regression model and then estimate the vertical leap of the prospective…

Q: A student found that his correlation analysis is insignificant (P < α) but his scatter plot showed a…

A: Here option d is correct. That is his scatter plot probably shows a quadratic trend. As correlation…

Q: Why is it important to make the variance of a time series plot more stable?

A: Why is it important to make the variance of a time series plot more stable?    A time series is used…

Q: a pearson correlation value (r) indicates the exact degree of accuracy in which a researcher can…

A: Pearson Correlation Coefficient r is a measure which indicates the strength of a linear association…

Q: The standard deviation of return on investment A is 19%, while the standard deviation of return on…

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Q: How the ADF statistic can be used to test for a stochastic trend?

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Q: 2. a. Distinguish between correlation and regression analysis. [2]

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer one question at a…

Q: n what four intances can correlation analyses become very useful? Explain each of them.

A: Correlation is a statistical method used to assess a possible linear association between two…

Q: If the variance of the sum is Var(X+Y) = 6 and Var(X) = Var(Y) = 4, then what is the correlation…

A: given data  Var(X+Y) = 6 Var(X) = Var(Y) = 4 corr(X,Y) = ?

Q: discuss the limitation of correlation analysis.

A: Correlation: Correlation is a measure which indicates the “go-togetherness” of two data sets. It can…

Q: What is the Pearson's r correlation coefficient between two variables X and Y if their covariance is…

A: Given that,the covariance between X and Y is the standard deviation of X is the standard deviation…

Q: The correlation between years of Training and income in a sample of 20 people from a certain company…

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Q: A correlation of -0.40 indicates a weaker linear relationship than a correlation of 0.38.

A: Correlation indicates the strength of the association.

Q: True or False The correlation coefficient is a measure of thestrength of a linear relation between…

A: The correlation coefficient is a measure of the strength of a linear relationship between two…

Q: For each of the following situations, indicate why the correlation coefficient might be a distorted…

A: Corr coefficient shows the degree to which 2 variables are related.