Generally speaking, if two variables are unrelated (as one increases, the other shows no pattern), the covariance will be:
A) a large positive number
B) a large negative number
C) a positive or negative number close to zero
D) a positive or negative number close to 100
E) none of these

Question

Quizplus · Accepted Answer

When two variables are unrelated, there is no systematic relationship between them. As a result, the covariance will be close to zero, regardless of whether it is positive or negative. A large positive or negative number indicates a strong linear relationship between the variables, which is not the case when they are unrelated. A large number close to 100 implies that the variables are nearly perfectly positively or negatively correlated, which is also not the case when they are unrelated. Therefore, the best choice is C.

Generally Speaking, If Two Variables Are Unrelated (As One Increases