Concept:The correlation coefficient is unaffected by adding a constant to a variable or scaling it by a positive constant.
Explanation:Given: correlation between
X and
Y is
ρXY=0.6.
Define
Z=X+5 and
W=3Y.
Step 1: Variance and standard deviation of
Z and
W.
Adding a constant does not change variance:
Var(Z)=Var(X), so
σZ=σX.
Scaling multiplies variance by the square of the factor:
Var(W)=91Var(Y), so
σW=3σY.
Step 2: Covariance between
Z and
W.
Cov(Z,W)=Cov(X+5,3Y)=31Cov(X,Y) because adding a constant does not affect covariance and scaling one variable scales the covariance by that factor.
Step 3: Correlation coefficient formula.
ρZW=σZσWCov(Z,W)=σX⋅3σY31Cov(X,Y)=σXσYCov(X,Y)=ρXY=0.6.
Thus, the correlation between
Z and
W equals the original correlation of
X and
Y.
Answer:0.6, which corresponds to option D.