The covariance
A) can be positive or negative.
B) must be less than +1.
C) must be between −1 and +1.
D) must be positive.

Question

Quizplus · Accepted Answer

Covariance can be positive, indicating that two variables move in the same direction, or negative, indicating that they move in opposite directions. It does not have a bounded range like correlation coefficients, which must be between -1 and +1, so options B and C are incorrect. Covariance being positive is not a must, as it can also be negative, making D incorrect.

The Covariance