Explaining correlation rule

Reference no: EM1320438

Q1) Given wiener process W(t) with parameter α, we form processes X(t) = W(t²). Illustrate that X(t) is normal with mean zero. Also, if t1 x (t1,t2)= αt1²

Q2) Let W_t be wiener process and t denote time. Is stochastic process X_t - 2W_t +t martingale? Describe in detail.

Q3) Assume correlation between height and weight for adults is +0.70. What percent of variability in weight is predicted by relationship with height?

a) 70%

b) 30%

c) 35%

d) 49%

2) If value of correlation is r = -1.00, then all of data points on scatter plot would fall on straight line.

3) Correlation rule states that if X and Y are correlated, X has caused Y.

4) A linear regression

a) Is the line that best fits on a scatter plot.

b) Is equation used to predict a y score from an x.

c) Can't be used if r = 0.

d) all of the above.

Q5) Find out is the correlation?

Reference no: EM1320438

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