Question - show that if y=ax+b with a>0 then corr(x,y)=1 . What relationship between X and Y would give Cov(x,y)=-1?
I got from subbing in y=ax+b that it is equal to $$a/√a^2$$ Which I think will give you $$ a/mod a$$
Question - show that if y=ax+b with a>0 then corr(x,y)=1 . What relationship between X and Y would give Cov(x,y)=-1?
I got from subbing in y=ax+b that it is equal to $$a/√a^2$$ Which I think will give you $$ a/mod a$$
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If $y=-x+b$ (i.e. $a=-1$), then $Cov(y,x)=corr(y,x)=-1$.