Covariance is a measure of how two variables change together. It measures the direction and strength of the linear relationship between two variables.
Covariance is calculated by taking the sum of the products of the deviations of each variable from their respective means, divided by the total number of observations.
A positive covariance indicates a direct relationship between the two variables, meaning that as one variable increases, the other variable also tends to increase. A negative covariance indicates an inverse relationship, meaning that as one variable increases, the other variable tends to decrease.
No, there is no standard unit for covariance. It is measured in the units of the two variables being compared.
No, covariance only measures the strength and direction of a linear relationship between two variables. It does not indicate causation, as there may be other variables or factors at play.
