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4 cards from this section. Quick, good the night before a test.
Define covariance in your own words.
Think about how variables interact.
What does a covariance of zero imply?
Consider what happens when variables are unrelated.
What does a negative covariance indicate?
Think about how variables may move in different directions.
Is correlation always between -1 and 1?
Consider the definitions of correlation.
Given two datasets, A = {4, 5, 6} and B = {10, 20, 30}, calculate both covariance and correlation. What insights can you derive from the values?
Remember to calculate means first and consider the relationship between data when deriving insights.
If the correlation coefficient between two variables is -0.9, what does that imply about their relationship? Can you construct a hypothetical dataset that fits this correlation?
Try sketching out the data points and observe how they trend together!
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