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    Covariance and Correlation-9

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    Shobha Kumari Choudhary
    Covariance and correlation are statistical concepts that describe the relationship between two variables. Covariance measures how much two random variables change together, taking any value between negative infinity and positive infinity, while correlation measures the strength and direction of the relationship between variables on a scale from -1 to 1. Both concepts can indicate whether changes in one variable correspond to changes in the other variable and whether the relationship is positive or negative.

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    Covariance and Correlation-9

    Uploaded by

    Shobha Kumari Choudhary
    25 views3 pages
    Covariance and correlation are statistical concepts that describe the relationship between two variables. Covariance measures how much two random variables change together, taking any value between negative infinity and positive infinity, while correlation measures the strength and direction of the relationship between variables on a scale from -1 to 1. Both concepts can indicate whether changes in one variable correspond to changes in the other variable and whether the relationship is positive or negative.

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    Covariance and correlation are statistical concepts that describe the relationship between two variables. Covariance measures how much two random variables change together, taking any value between negative infinity and positive infinity, while correlation measures the strength and direction of the relationship between variables on a scale from -1 to 1. Both concepts can indicate whether changes in one variable correspond to changes in the other variable and whether the relationship is positive or negative.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    25 views3 pages

    Covariance and Correlation-9

    Uploaded by

    Shobha Kumari Choudhary
    Covariance and correlation are statistical concepts that describe the relationship between two variables. Covariance measures how much two random variables change together, taking any value between negative infinity and positive infinity, while correlation measures the strength and direction of the relationship between variables on a scale from -1 to 1. Both concepts can indicate whether changes in one variable correspond to changes in the other variable and whether the relationship is positive or negative.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
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    Mathematics | Covariance and

    Correlation
    Covariance and Correlation are two mathematical concepts which are
    commonly used in the field of probability and statistics. Both concepts
    describe the relationship between two variables.
    Covariance –
    1. It is the relationship between a pair of random variables where change in
    one variable causes change in another variable.
    2. It can take any value between -infinity to +infinity, where the negative
    value represents the negative relationship whereas a positive value
    represents the positive relationship.
    3. It is used for the linear relationship between variables.
    4. It gives the direction of relationship between variables.
    Formula –
    For Population:

    For Sample

    Here,
    x’ and y’ = mean of given sample set
    n = total no of sample
    xi and yi = individual sample of set
    Example –
    Correlation –
    1. It show whether and how strongly pairs of variables are related to each
    other.
    2. Correlation takes values between -1 to +1, wherein values close to +1
    represents strong positive correlation and values close to -1 represents
    strong negative correlation.
    3. In this variable are indirectly related to each other.
    4. It gives the direction and strength of relationship between variables.
    Formula –

    Here,
    x’ and y’ = mean of given sample set
    n = total no of sample
    xi and yi = individual sample of set
    Example –
    Covariance versus Correlation –
    Covariance Correlation

    Covariance is a measure of how Correlation is a statistical measure that


    much two random variables vary indicates how strongly two variables are
    together related.

    involve the relationship between involve the relationship between


    two variables or data sets multiple variables as well

    Lie between -infinity and +infinity Lie between -1 and +1

    Measure of correlation Scaled version of covariance

    provide direction and strength of


    provide direction of relationship
    relationship

    dependent on scale of variable independent on scale of variable

    have dimensions dimensionless

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