The limitation of covariance as a descriptive measure of association is that it
A)Only captures positive relationships
B)Does not capture the units of the variables
C)Is very sensitive to the units of the variables
D)Is invalid if one of the variables is categorical
E)None of these options

Question

Quizplus · Accepted Answer

Covariance is very sensitive to the units of the variables, which means that the magnitude of the covariance will be influenced by the scale on which the variables are measured. For example, if one variable is measured in pounds and the other variable in kilograms, the covariance might be difficult to interpret. This is why correlation, a standardized measure, is often preferred over covariance.

The Limitation of Covariance as a Descriptive Measure of Association