Which of the following is TRUE regarding the covariance? A)a positive covariance means that the two variables move in the same direction. B)a negative covariance means that the two variables move in opposite directions. C)a covariance of zero indicates no linear association at all. D)it is denoted by $\sigma$_xy E)all of the above

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Quizplus · Accepted Answer

Covariance is a measure of how changes in one variable are associated with changes in a second variable. Specifically, a positive covariance indicates that the two variables tend to move in the same direction, while a negative covariance suggests they move in opposite directions. A covariance of zero implies no linear relationship between the variables. The notation for covariance typically involves symbols like σ or Cov, but the essence of the statement D, despite its unclear notation, seems to aim at denoting covariance, which aligns with the concept. Therefore, all the statements A, B, and C correctly describe aspects of covariance.

Which of the Following Is TRUE Regarding the Covariance? A)a σ\sigmaσ

Which of the Following Is TRUE Regarding the Covariance?
A)a $\sigma$