If X and Y are correlated and Y and Z are correlated, then X and Z are correlated.
prove or disprove?
Disprove
Correlation is not Transitive:
If X and Y are correlated and Y and Z are correlated, then it will not always be the case that X and Z are correlated. We have to check the corrleation between variables , their strenght and direction.
The single number (the correlation coefficient) does not
encapsulate enough information to guarantee transitivity of the
property of being positively correlated. However, if we know the
correlation coefficient rXY and rYZ then we can find upper and
lower bounds for rXZ .
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