Positively Correlated

Probability Level 4

Suppose that $A, B, C$ are random variables such that:
$A, B$ are positively correlated,
$B, C$ are positively correlated.

Then, what can we say about the correlation of $A, C$ ?

They are negatively correlated We are unable to determine without further information They are positively correlated They have 0 correlation

1 solution

Yugesh Kothari
Aug 23, 2016

Not sure of a mathematical proof but an example is simple -

I will toss two coins and clean my room if either one of them is heads.

A: One of them is heads.

B: I will clean my room.

C: Both of them are heads.