When interpreting the covariance between variables x and y,which of the following statements is most accurate?
A)A negative value of covariance that,on average,if x is below its mean,then y tends to be below its mean.
B)A positive value of covariance indicates that,on average,if x is above its mean,then y tends to be above its mean.
C)A positive value of covariance indicates that,on average,if x is above its mean,then y tends to be below its mean.
D)A negative value of covariance indicates that,on average,if x is above its mean,then y tends to be above its mean.

Question

Quizplus · Accepted Answer

A positive value of covariance indicates that the two variables tend to move in the same direction. Therefore, if x is above its mean, y tends to be above its mean as well. Similarly, if x is below its mean, y tends to be below its mean. The opposite is true for a negative value of covariance.

When Interpreting the Covariance Between Variables X and Y,which of the Following