The Covariance Explained in One Minute: Definition, Formula and Examples
1:58
YouTubeOne Minute Economics
The Covariance Explained in One Minute: Definition, Formula and Examples
Simply put, the covariance tells us if two variables such as the ones presented in this video's main example move in the same direction. Among other things, we use the covariance to calculate the correlation coefficient, which also tells us to which degree the two variables move together (but more on that in a future video... for now, we'll ...
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