Question
Download Solution PDFFollowing two statements are related to coefficient of correlation
(I) Independent of the change of origin
(II) Independent of the change of scale
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFExplanation:
Variance is independent of change of origin as the change in origin is uniformly added to all the values and hence the mean also and hence, when is calculated, it remains unaffected. But, change of scale alters all values unevenly and hence, variation changes.
The correlation coefficient is dependent on the choice of both origin and scale of observation.
Hence, both (I) and (II) is correct.
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