I made a typo in last issue of the newsletter which was
corrected right away, but many still got the uncorrected
version. Instead of writing C(X,Y) = 0 for uncorrelation, I
wrote P(X,Y) = 0. This is a non trivial error, as C(X, Y) = 0
means that the covariance between X and Y variables is zero
(uncorrelation) while P(X,Y) = 0 is often used in reference to
disjoint (mutually exclusive events). Ah, the power of a single
letter-typo… That’s kind of stuffs happen when you are pressed
with so many deadlines. My apologies for that. I’ll repeat this
clarification in the next issue of IRW since it covers the
second part of the subject on correlation. The purpose of this
post is to gives you a sneak preview on what to expect from the
June issue. Variables or events are said to be independent,
correlated, uncorrelated, orthogonal, or unrelated depending on
the type of scenario. Independence implies that P(X,Y) =
P(X)*P(Y) where P is probability; i.e., the probability of X and
Y to occur is equal to the product of the i