Let X and Y be random variables, and a and b be constants. ???? a)  Show that Cov [aX,bY] = abCov [X,Y] . b)  Show that if a > 0 and b > 0, then the correlation coefficient between aX and bY is the same as the correlation coefficient between X and Y . c)  Is the correlation coefficient between X and Y unaffected by changes in the units of X and Y ?

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  1. Let X and Y be random variables, and a and b be constants. ????

    1. a)  Show that Cov [aX,bY] = abCov [X,Y] .

    2. b)  Show that if a > 0 and b > 0, then the correlation coefficient between aX and bY is the

      same as the correlation coefficient between X and Y .

    3. c)  Is the correlation coefficient between X and Y unaffected by changes in the units of X

      and Y ?

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