Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2003/ia/paper-2/10f/i/solution

The probabilities satisfy and . Since the variables are indicators,
Their covariance is
Thus the necessary and sufficient condition for uncorrelated random variables is
This uses zero covariance as the definition. If one variable is constant, a normalized correlation coefficient is undefined, but zero covariance and this criterion remain meaningful.

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