8.Determine and interpret the correlation coefficient for the two variables X and Y. The standard deviation of X is 0.05, the standard deviation of Y is 0.08, and their covariance is –0.003.

A)   –1.33 and the two variables are negatively associated.

B)   +0.75 and the two variables are positively associated.

C)   –0.75 and the two variables are negatively associated.

D)   +1.33 and the two variables are positively associated.

The correct answer was C)

The correlation coefficient is the covariance divided by the product of the two standard deviations, i.e. –0.003 divided by (0.08 × 0.05).