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

Question

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

Quizplus · Accepted Answer

The covariance can be positive or negative as it measures the degree to which two variables vary together. If they vary in the same direction, the covariance will be positive, and if they vary in opposite directions, the covariance will be negative. Therefore, option C is the best choice. The covariance can be positive or negative, depending on the direction of the relationship between the two variables being measured. It can range from positive infinity to negative infinity. Therefore, options A, B, and D are incorrect.

The Covariance