Posted by **Susan** on Sunday, December 6, 2009 at 3:53am.

1. Assume that q and z are two random variables that are perfectly positively correlated. q takes the value of 20 with probability 0.5 and the value of zero with probability 0.5, while z takes the value of 10 with probability 0.5 and the value of zero with probability 0.5. What is the COVARIANCE of q and z?

(A) 50.

(B) 100.

(C) 0.

(D) 1.

(E) There is not enough information to tell.

(Solution is B, 100)

- Economics/Statistics -
**economyst**, Monday, December 7, 2009 at 1:25pm
Because they are perfectly postively correlated, the covariance between the q and z is 1.00

Because, (while not explained or pointed out), the possible answers are expressed in percentage terms and the decimal point is moved over 2 places, the answer you seek is B.

## Answer this Question

## Related Questions

- Economics/Math - 1. Assume that q and z are two random variables that are ...
- probability - For each of the following sequences, determine the value to which ...
- Probability - For each of the following sequences, determine the value to which ...
- statistics - A researcher finds that two continuous, random variables of ...
- statistics - A researcher finds that two continuous, random variables of ...
- Probability - Let X be a random variable that takes non-zero values in [1,∞...
- Statistics - In a population, heights of males are normally distributed with u=...
- statistics - A random sample of n= 16 scores is selected from a normal ...
- Statistics - Construct the probability distribution for the value of a 2-card ...
- Statistics - Construct the probability distribution for the value of a 2-card ...