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For two variables x and y, it is known that cov (x, y) = 80, variance of x is 16 and sum of squares of deviation of y from its mean is 250. The number of observations for this bivariate data is
  • a)
    7
  • b)
    8
  • c)
    9
  • d)
    10
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
For two variables x and y, it is known that cov (x, y) = 80, variance ...
we will try to solve the problem by exploiting the fact that correlations is always less than or equal to 1
 correlation = 80/((standard deviation of x)*(stadard deviation of y)) standard deviation of x = squareroot(16) = 4 standard deviation of y = squareroot (250/N) = 5(10/N)^0.5 so we get 80/(4*5*(10/N)^0.5)  <1 implies 4 < (10/n)^0.5 implies 16 <10/N implies N<10/16 which is impossible. the figures do not make sense once again. even if they do we cannot find out N just with the help of covariance. 

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Most Upvoted Answer
For two variables x and y, it is known that cov (x, y) = 80, variance ...
Solution:

Given, cov(x,y) = 80, variance of x is 16 and sum of squares of deviation of y from its mean is 250.

We know that,

Covariance of x and y, cov(x,y) = E[(x-μx)(y-μy)]

Variance of x, Var(x) = E[(x-μx)^2]

Sum of squares of deviation of y from its mean, ∑(yi-μy)^2

where,
μx, μy = mean of x and y respectively

Let the number of observations be n.

Calculating μx:

We know that, μx = E[x] and variance of x, Var(x) = E[(x-μx)^2]

Given, Var(x) = 16

So, E[(x-μx)^2] = 16

E[x^2 - 2μxx + μx^2] = 16

E[x^2] - 2μxE[x] + μx^2 = 16

We know that, E[x^2] = Var(x) + E[x]^2

So, Var(x) + E[x]^2 - 2μxE[x] + μx^2 = 16

Substituting Var(x) = 16, we get

16 + E[x]^2 - 2μxE[x] + μx^2 = 16

E[x]^2 - 2μxE[x] + μx^2 = 0

(E[x] - μx)^2 = 0

E[x] = μx

So, μx = E[x] = E[(x-μx)^2] = Var(x) = 16

Calculating μy:

We know that, ∑(yi-μy)^2 = E[(y-μy)^2]

Given, ∑(yi-μy)^2 = 250

So, E[(y-μy)^2] = 250

We know that, E[(y-μy)^2] = Var(y)

So, Var(y) = 250

Also, we know that, cov(x,y) = E[(x-μx)(y-μy)]

Substituting μx = 16, cov(x,y) = 80, and E[(x-μx)(y-μy)] = cov(x,y), we get

E[(x-16)(y-μy)] = 80

Expanding the above equation, we get

E[xy-16y-μyx+16μy] = 80

E[xy] - 16E[y] - 16μx + 16μy = 80

We know that, E[x] = μx = 16

Substituting the above values, we get

E[xy] - 16E[y] - 256 + 16μy = 80

E[xy] - 16E[y] + 16μy = 336

E[xy] - 16(E[y] - μy) = 336

We know that, Var(y) = E[(y-μy)^2]

Expanding the above equation, we get

Var(y) = E[y^2] - 2μy
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For two variables x and y, it is known that cov (x, y) = 80, variance of x is 16 and sum of squares of deviation of y from its mean is 250. The number of observations for this bivariate data isa)7b)8c)9d)10Correct answer is option 'D'. Can you explain this answer?
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For two variables x and y, it is known that cov (x, y) = 80, variance of x is 16 and sum of squares of deviation of y from its mean is 250. The number of observations for this bivariate data isa)7b)8c)9d)10Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about For two variables x and y, it is known that cov (x, y) = 80, variance of x is 16 and sum of squares of deviation of y from its mean is 250. The number of observations for this bivariate data isa)7b)8c)9d)10Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for For two variables x and y, it is known that cov (x, y) = 80, variance of x is 16 and sum of squares of deviation of y from its mean is 250. The number of observations for this bivariate data isa)7b)8c)9d)10Correct answer is option 'D'. Can you explain this answer?.
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