Covariance

Covariance

The covariance tells us to what extent X and Y "go together". Thinking back to correlation, it counts to what extent observations group into quadrants 1 and 3 (positive covariance) or 2 and 4 (negative covariance).


The idea behind covariance will be essential in your future classes where you may use multiple regression (regression with more than 1 independent variable).