The GDP and selected indicators for the United States, years 2019 and 2020, are found below. What is the covariance?National Accounts, Current Prices, Non-Seasonally Adjusted20192020Gross Domestic Product, Nominal, Domestic Currency21,433,226.3020,932,758.50Household Consumption Expenditure, incl. NPISHs, Nominal, Domestic Currency14,544,600.8014,147,416.30Government Consumption Expenditure, Nominal, Domestic Currency2,995,056.003,037,173.30Gross Fixed Capital Formation, Nominal, Domestic Currency4,454,940.304,470,361.50Change in Inventories, Nominal, Domestic Currency49,100.00-76,963.30Exports of Goods and Services, Nominal, Domestic Currency2,514,750.802,126,394.50Imports of Goods and Services, Nominal, Domestic Currency3,125,221.302,771,623.50

Here, need to calculate Covariance. Let X be the GDP for united states in year 2019. Let Y be the…

Answered: The GDP and selected indicators for the…

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The GDP and selected indicators for the United States, years 2019 and 2020, are found below. What is the covariance?

National Accounts, Current Prices, Non-Seasonally Adjusted	2019	2020
Gross Domestic Product, Nominal, Domestic Currency	21,433,226.30	20,932,758.50
Household Consumption Expenditure, incl. NPISHs, Nominal, Domestic Currency	14,544,600.80	14,147,416.30
Government Consumption Expenditure, Nominal, Domestic Currency	2,995,056.00	3,037,173.30
Gross Fixed Capital Formation, Nominal, Domestic Currency	4,454,940.30	4,470,361.50
Change in Inventories, Nominal, Domestic Currency	49,100.00	-76,963.30
Exports of Goods and Services, Nominal, Domestic Currency	2,514,750.80	2,126,394.50
Imports of Goods and Services, Nominal, Domestic Currency	3,125,221.30	2,771,623.50

Definition Definition Measure of how two random variables change together. Covariance indicates the joint variability or the directional relationship between two variables. When two variables change in the same direction (i.e., if they either increase or decrease together), they have a positive covariance. When the change is in opposite directions (i.e., if one increases and the other decreases), the two variables have a a negative covariance.

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