Which of the following is most accurate?
A) If correlation is positive, covariance is positive.
B) If correlation is positive, covariance may be positive or negative.
C) If correlation is positive, covariance is negative.
D) If correlation is positive, covariance will be smaller than correlation.

Question

Quizplus · Accepted Answer

Correlation and covariance are both measures of the relationship between two variables. A positive correlation implies that as one variable increases, the other variable also increases, and this relationship is quantified by covariance. Therefore, if the correlation is positive, the covariance must also be positive, as they both indicate the direction of the linear relationship between the two variables.

Which of the Following Is Most Accurate