16.2 - Interpretation of Covariance
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Practice Questions
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Define covariance in your own words.
💡 Hint: Think about how one variable can affect another.
What does a positive covariance indicate?
💡 Hint: Consider the directions of change for both variables.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is covariance?
💡 Hint: Focus on the relationship aspect.
True or False: A covariance of zero indicates a strong negative relationship.
💡 Hint: Think about what zero means.
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Challenge Problems
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Given two data sets, compute covariance and then describe what it indicates about their relationship: X = {3, 5, 7, 9} and Y = {12, 15, 18, 22}.
💡 Hint: Calculate means first to understand the changes.
You observe a dataset with positive covariance in temperature and ice cream sales. How might this information be strategically utilized by a business?
💡 Hint: Consider seasonality and marketing strategies.
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