If X and Y Are Two Variables with E(XY)= 10

question 230

True/False

If X and Y are two variables with E(XY)= 10.56,E(X)= 4.22,and E(Y)= 5.34,then COV(X,Y)= 1.0.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level, making it more useful for controlling costs and operational efficiency.

Net Operating Income

The profit generated from a company's operations, excluding non-operating income and expenses like interest and taxes.

Customers Served

The number of customers who receive services or goods from a business or organization.

Activity Variance

Deviation between planned and actual activity levels, often analyzed in the context of budgeting or performance measurement.