Which of the following statements best illustrates the concept of covariance?
A) "Scores on the two variables are normally distributed."
B) "People with above average incomes also spend more than the average person."
C) "The variance of X is equal to the variance of Y."
D) "The null hypothesis was rejected."

Question

Quizplus · Accepted Answer

Covariance refers to the relationship between two variables, specifically how they vary together. Choice B describes a positive covariance, where the two variables (income and spending) tend to increase or decrease together.

Which of the Following Statements Best Illustrates the Concept of Covariance