honeycfa

In addition to the usual parameters that describe a normal distribution, to completely describe 10 random variables, a multivariate normal distribution requires knowing the:

A) 45 correlations.

B) overall correlation.

C) 10 correlations.

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The number of correlations in a multivariate normal distribution of n variables is computed by the formula ((n) × (n-1)) / 2, in this case (10 × 9) / 2 = 45.

honeycfa

In a multivariate normal distribution, a correlation tells the:

A) relationship between the means and variances of the variables.

B) strength of the linear relationship between two of the variables.

C) overall relationship between all the variables.

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This is true by definition. The correlation only applies to two variables at a time.