Sunday, January 18, 2009

Coefficient of Correlation

We know that covariance is a measure which indicates by its value the existence of a statistical relationship between two quantitative variables , and indicating by its sign of the nature of the relationship , that is , whether the values of the two variables move in general in the same or opposite directions .
The value of the covariance depends upon the units in which x and y are measured to get rid of this difficulty .