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Question: Distinguish Between Covariance and Correlation

Covariance provides a measure of the strength of the correlation between two or more random variables, while correlation is a statistical technique that shows whether and how strongly pairs of variables are related. There are several key differences between covariance and correlation: covariance only indicates direction of relationship and is affected by individual variable dispersion, while correlation adjusts for dispersion and measures strength of relationship on a scale from -1 to 1. Correlation also categorizes relationships as positive, negative, or zero, while covariance can only be positive or negative.

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25 views

Question: Distinguish Between Covariance and Correlation

Covariance provides a measure of the strength of the correlation between two or more random variables, while correlation is a statistical technique that shows whether and how strongly pairs of variables are related. There are several key differences between covariance and correlation: covariance only indicates direction of relationship and is affected by individual variable dispersion, while correlation adjusts for dispersion and measures strength of relationship on a scale from -1 to 1. Correlation also categorizes relationships as positive, negative, or zero, while covariance can only be positive or negative.

Uploaded by

Chayan Ard
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Question: Distinguish between covariance and correlation.

Answer:
Covariance: Covariance provides a measure of the strength of the correlation between two or
more sets of random variables.
Correlation: Correlation is a statistical technique that can show whether and how strongly
pairs of variables are related.

Differences between covariance and correlation:


# Covariance only indicate the direction of the relationship.
Correlation measures the strength of the relationship.
# Covariance is hard to interpret is that its affected by dispersion of individual variables.
Correlation adjusts for individual dispersion, so it has no problem.
# Covariance can be classified as positive covariance (two variables tend to vary together)
and negative covariance (one variable is above or below the expected value compared to
another variable).
Correlation has three categories; positive, negative, or zero. Positive correlation is
indicated by a plus sign, a negative sign for negative correlation, and 0 for uncorrelated
variables.

# Covariance express is in unit.


Correlation is unit free.
# Covariance values can exceed high scale than correlation.
Correlation values range from -1 to +1.
# Covariance can measures the relationship between two variables or two data sets.
Correlation can measures the relationship of several variables or data sets.
# Covariance is measure of correlation.
Correlation is a scaled version of covariance.
# Covariance measures, how two random variables vary together.
Correlation measures, how close two variables are from being independent from each
other.

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