Y and Z are two random variables with Correlation of YZ of 0.5
IF X=2Z-1, then correlation of XZ is equal to;
Can anyone help? Thanks in advance (Happy)
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Y and Z are two random variables with Correlation of YZ of 0.5
IF X=2Z-1, then correlation of XZ is equal to;
Can anyone help? Thanks in advance (Happy)
Correlation coefficient between X and Z =where
and
Now put these values in the first expression.
For further reasons behind this simplification, see Properties of Covariance and Properties of Variance
Note- By the way, your question is either incomplete or partially wrong since the answer has nothing to do with Correlation between Y and Z. Also, you need to know Var(Z).