Suppose that Y1 and Y2 have correlation coefficient py, ,Y, and for constants a, b, c and d let W, = a +bYj and W2 = c +dY2. a Show that the correlation coefficient between W1 and W2, pw,W;. is such that |py, vz| = lew,.w2l- b Does this result explain the results that you obtained in Exercise 5.110?

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5.113 Suppose that Y1 and Y2 have correlation coefficient py,y, and for constants a, b, c and d let
W1 = a + bY1 and W2 = c + dY2.
a Show that the correlation coefficient between W1 and W2, pw,.w2, is such that \pr,r,| =
lewi.wzl-
b Does this result explain the results that you obtained in Exercise 5.110?
Transcribed Image Text:5.113 Suppose that Y1 and Y2 have correlation coefficient py,y, and for constants a, b, c and d let W1 = a + bY1 and W2 = c + dY2. a Show that the correlation coefficient between W1 and W2, pw,.w2, is such that \pr,r,| = lewi.wzl- b Does this result explain the results that you obtained in Exercise 5.110?
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