If two random variables X and Y are independent, are they also
un-correlated ? Separately, if X and Y are un-correlated are they
also independent ? When is the second statement always true
?
(a)
Answer:
Yes
EXPLANATION:
If two random variables are independent, then they are un-correlated.
(b)
The statement, "If X and Y are un-correlated, they are also independent" is always true only when f(X) and g(Y) are un-correlated for all functions f(.) and g(.).
EXPLANATION:
Correlation only means linear relation. Independent random variables are unrelated up to any functional transformation.
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