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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What does a positive covariance indicate?
💡 Hint: Think about how two related variables might behave.
Question 2
Easy
What is the formula for covariance?
💡 Hint: Recall the relationship with mean values.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is the range of covariance values?
- 0 to 1
- -∞ to ∞
- -1 to 1
💡 Hint: Consider if a value could fall below zero.
Question 2
True or false: Correlation measures the strength and direction of a linear relationship.
- True
- False
💡 Hint: Remember the role of correlation in analysis.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Given the datasets A = {3, 6, 9} and B = {3, 3, 6}, calculate the covariance and correlation, explaining the contextual relationship evident in the value.
💡 Hint: Work step by step from finding means to calculating covariance.
Question 2
Critically evaluate the usage of covariance in evaluating risk in financial portfolios. How does it aid in investment decisions?
💡 Hint: Use real financial examples to illustrate your interpretation.
Challenge and get performance evaluation