Question: Show that cov(X, Y)' < in the case where Var(X) O. Hints: Start with Cov(aX - W, ax - W ) = Var(aX -

Show that cov(X, Y)' < in the case where Var(X) O. Hints:

Show that cov(X, Y)' < in the case where Var(X) O. Hints: Start with Cov(aX - W, ax - W ) = Var(aX - bY) > O. Expand the left-hand side with Theorem 5.4(b). Then substitute a = cov(X , Y) and b Var(X).

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