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Chapter 5b

# Chapter 5b - during the week Because X and Y are both...

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Magnitude of Correlation 0.8 <  |r| <  1  strong .5 < |r| < 0.80 moderate 0 <  |r|  <  .5 weak Covariance and Correlation Example Gasoline is to be stocked in a bulk tank once at the beginning of each week and then sold to  individual customers. Let X denote the proportion of the capacity of the bulk tank that is  available after the tank is stocked at the beginning of the week. Because of limited supplies, X  varies from week to week. Let Y denote the proportion of the capacity of the bulk that is sold

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Unformatted text preview: during the week. Because X and Y are both proportions, both variables take on values between 0 and 1. Further, the amount sold (Y) cannot exceed the amount available (X). Suppose the joint density of X and Y are described using the following function: f(x, y) = 3x, 0 &amp;lt; y &amp;lt; x &amp;lt; 1. Find covariance and correlation for x and y....
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Chapter 5b - during the week Because X and Y are both...

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