When cov(X,Y) = 0, what does it indicate? X and Y tend to move in same direction. X and Y are independent. X and Y tend to move in opposite directions. None of the above
Question
When cov(X,Y) = 0, what does it indicate? X and Y tend to move in same direction. X and Y are independent. X and Y tend to move in opposite directions. None of the above
Solution
The covariance of two variables X and Y measures the degree to which the two variables move together. If the covariance is 0, it indicates that X and Y do not move together at all. In other words, the movements of X and Y are uncorrelated. This does not necessarily mean that X and Y are independent, but simply that they do not move together. Therefore, the correct answer is "None of the above".
Similar Questions
What does a positive covariance between two variables indicate?Question 1Answera.Variables move in opposite directionsb.There is no relationship between variablesc.One variable is constantd.Variables move together in the same direction
If X and Y are independent random variables, then what is the covariance between them?Review LaterCov(X,Y) = 1Cov(X,Y) = 0Cov(X,Y) = -1It cannot be determined without additional information.
Cov(X, Y ) = E[XY ] − E[X]E[Y ]
Recall from the previous quiz the random variables X and Y with joint probability distributionY=0 Y = 1X = 0 0.4 0.1X = 1 0.3 0.2The covariance between X and Y is
The covariance between two variables is(a) Strictly positive(b) Strictly negative(c) Always 0(d) Either positive or negative or zero
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