Which of the following is incorrect? (a) The correlation and the covariance tell us about the direction of the linear relationship between two variables (b) The covariance ranges between -1 and 1 (c) We can use a scatterplot to observe the strength and direction of the linear relationship between two variables (d) If two variables are independent, then their correlation is zero. (e) We cannot tell the strength of the linear relationship of two variables from the covariance

A First Course in Probability (10th Edition)
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ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Which of the following is incorrect?
(a) The correlation and the covariance tell us about the direction of the linear
relationship between two variables
(b) The covariance ranges between -1 and 1
(c) We can use a scatterplot to observe the strength and direction of the linear
relationship between two variables
(d) If two variables are independent, then their correlation is zero.
(e) We cannot tell the strength of the linear relationship of two variables from the
covariance
Transcribed Image Text:Which of the following is incorrect? (a) The correlation and the covariance tell us about the direction of the linear relationship between two variables (b) The covariance ranges between -1 and 1 (c) We can use a scatterplot to observe the strength and direction of the linear relationship between two variables (d) If two variables are independent, then their correlation is zero. (e) We cannot tell the strength of the linear relationship of two variables from the covariance
Expert Solution
Step 1: Introduction

Covariance:

Covariance is a measure of how two variables change together. It quantifies the degree to which two variables tend to increase or decrease simultaneously.

It can be positive, negative, or zero, depending on whether the two variables tend to increase together, decrease together or show no consistent pattern.

Correlation: 

Correlation is a standardized measure of the linear relationship between two variables. It indicates not only whether two variables are related but also the strength and direction of that relationship. It ranges from negative 1 to plus 1.

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