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Activity focus

  • sign of covariance
  • covariance interpretation
  • covariance vs correlation

Practice set

  1. If one variable increases while the other tends to decrease, what sign is expected?
  2. Does covariance alone give a standardized strength measure?
  3. Why can unit change affect covariance?

Answer key

  1. Negative
  2. No
  3. Because covariance depends on the scale of the variables