# Economics/Statistics

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)

1. 👍 0
2. 👎 0
3. 👁 65
1. 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.

1. 👍 0
2. 👎 0

## Similar Questions

1. ### Economics/Math

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

asked by Susan on December 5, 2009
2. ### Algebra 1

Given the data set for the length of time a person has been jogging and the person's speed, hypothesize a relationship between the variables. a) I would expect the data to be positively correlated b) I would expect the data to be

3. ### Sentences

Is "negative correlated" used correctly in this sentence? The variables were negatively correlated.

asked by Anonymous on January 13, 2014
4. ### probability

Consider n independent rolls of a k-sided fair die with k≥2: the sides of the die are labelled 1,2,…,k and each side has probability 1/k of facing up after a roll. Let the random variable Xi denote the number of rolls that

asked by JuanPro on March 28, 2014
5. ### Statistics

I neep help on two questions! A condition that occurs in multiple regression analysis if the independent variables are themselves correlated is known as: 1. autocorrelation 2. stepwise regression 3. multicorrelation 4.

asked by Debra on September 14, 2008
6. ### Econometrics

Consider a linear model with unobserved beterogeneity (q) and measurement error in an explanatory variable: y = B0 + B1x1 + ... + Bkx*k + q + v where ek = xk - x*k is the measurement error and we set the coefficient on q equal to

asked by Joy on August 31, 2013
7. ### Educational tech

What does it mean to say that a country's land area is positively correlated with its population

asked by Cindy on October 14, 2018
8. ### probablity

In this problem, you may find it useful to recall the following fact about Poisson random variables. Let X and Y be two independent Poisson random variables, with means λ1 and λ2, respectively. Then, X+Y is a Poisson random

asked by Anonymous on December 16, 2018
9. ### Probability

For each of the following statements, determine whether it is true (meaning, always true) or false (meaning, not always true). Here, we assume all random variables are discrete, and that all expectations are well-defined and

asked by qwerty on March 4, 2014
10. ### EDUCATIONAL TECHNOLOGY help me asap

what does it mean to say that two variables are negatively correlated?

asked by RECONSNIPER on November 25, 2013

More Similar Questions