What can covariance be used for?
1 Answer
Nov 2, 2015
One use of co-variance is to study the correlation.
Explanation:
When we have sample data relating to two dependent variables, the co-variance becomes relevant.
Co-variance is a measure of the effect of variation between the two variables.
When we have two dependent variables say X and Y, we can study the variation within the values of X - this issigma_x^2
the variation within the values of Y is the variance of ysigma_y^2 .
The study of the simultaneous variation between X and Y is called COV(X,Y) orsigma_(xy) .