Question

Variables E and F have a covariance of 64, and variables A and B have a...

Variables E and F have a covariance of 64, and variables A and B have a covariance of 635. How does the E and F relationship compare to the A and B relationship?

Homework Answers

Answer #1

FIRST OF ALL , COVARIANCE MEASURES THE DIRECT REALTIONSHIP BETWEEN TWO RANDOM VARIABLES.

PROVIDED THAT , COV(A,B) = 635 , WHILE COV(E,F) = 64

NOW, IF THE VALUE OF COVARIANCE IS HIGH , THIS SHOWS THE STRONG RELATIONSHIP AMONG BETWEEN THE RANDOM VARIABLES

AND , IF THE VALUE OF COVARIANCE IS LOW , THIS SHOWS THE WEAK REALTIONSHIP BETWEEN RANDOM VARIABLES .

SO, RELATIONSHIP BETWEEN A AND B IS STRONGER THAN THE RELATIONSHIP BETWEEN E AND F BECAUSE THE COV(A,B) > COV(E,F)  

I HOPE I WAS HELPFUL AND HAVE CLEARED YOUR DOUBTS.

THANKYOU

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