Suppose that Y1 and Y2 have correlation coefficient py, ,Y, and for constants a, b, c and d let W, = a +bYj and W2 = c +dY2. a Show that the correlation coefficient between W1 and W2, pw,W;. is such that |py, vz| = lew,.w2l- b Does this result explain the results that you obtained in Exercise 5.110?

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