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Question
If the correlation coefficient between x and y is 0.8, what is the correlation coefficient between `"x"/2` and y
Solution
Correlation coefficient remains unaffected by the change of origin and scale.
i.e., if `"u"_"i" = ("x"_"i" - "a")/"h"` and `"v"_"i" = ("y"_"i" - "b")/"k"`, then Corr (u, v) = ± Corr (x, y), according to the same or opposite signs of h and k.
ui = `(("x"_"i" - 0))/2, "v"_"i" = ("y"_"i" - 0)/1`
Here, h = 1 and k = 1 are of the same signs.
∴ Corr (u, v) = Corr (x, y) = 0.8
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