Read dependence from a joint table

Problem

Binary variables X,Y∈{0,1}X,Y\in\{0,1\} have joint probabilities

p00=0.3,p01=0.2,p10=0.1,p11=0.4p_{00}=0.3,\quad p_{01}=0.2,\quad p_{10}=0.1,\quad p_{11}=0.4

Find P(X=1)P(X=1), P(Y=1)P(Y=1), P(X=1∣Y=1)P(X=1\mid Y=1), Cov⁡(X,Y)\operatorname{Cov}(X,Y), and Corr⁡(X,Y)\operatorname{Corr}(X,Y).

Reveal answer or reference solution

The marginals are P(X=1)=0.1+0.4=0.5P(X=1)=0.1+0.4=0.5 and P(Y=1)=0.2+0.4=0.6P(Y=1)=0.2+0.4=0.6. Thus P(X=1∣Y=1)=0.4/0.6=2/3P(X=1\mid Y=1)=0.4/0.6=2/3. Since E[XY]=P(X=Y=1)=0.4E[XY]=P(X=Y=1)=0.4,

Cov⁡(X,Y)=0.4−(0.5)(0.6)=0.1\operatorname{Cov}(X,Y)=0.4-(0.5)(0.6)=0.1

The Bernoulli variances are 0.250.25 and 0.240.24, so

Corr⁡(X,Y)=0.10.25⋅0.24=16≈0.4082\operatorname{Corr}(X,Y)=\frac{0.1}{\sqrt{0.25\cdot0.24}} =\frac1{\sqrt6}\approx0.4082
Outcome

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