Covariance
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Example: five students studied 1, 2, 3, 4 and 5 hours for an exam and scored 52, 58, 65, 70 and 80. Do hours and score move together? Change the values to work out your own case.
Step by step
What each term means
- Covariance
- Measures the linear relationship between two variables. A positive value indicates a direct relationship; a negative one, an inverse relationship.
- Summation
- Adds the products of the deviations over all 'n' observations in the data.
- Deviation of X
- The difference between each value of X (xi) and the mean of X (μx). It shows how far each point is from the mean.
- Deviation of Y
- The difference between each value of Y (yi) and the mean of Y (μy). It shows how far each point is from the mean.
- Number of Observations (n)
- The total number of pairs of observations in the data. It normalizes the sum to give the mean of the products of the deviations.