Question

My professor got the Covariance = - 0.00669 and she convert it to - 66.9 %.

I thought it is a mistake. Because, in general if I convert 0.00669 to percent will be 0.669% not - 66.9%.

However, the textbook I use it also made a same mistake.

So, I'd like to ask you guys why COV conversion is in this way??

Or is it a mistake??

Can someone explain it clearly why it happens?? Thank you :)

Answer 1

You are correct in the observation. It's just that in normal discussion as well as in book it is slightly confusing. What would make it more clear is the presence of %^2 instead of just %. So the professor and book should mention -66.9 %^2 instead of -66.9%. ^2 is omitted from the book and the professor.

-66.9% squared is same as -0.669% and the book should have said -66.9% squared instead of -66.9% which is what I have mentioned above when I say ^2 is omitted from the book.