Question

Positive values of covariance indicate a. a positive variance of the y values. b. the standard deviation is positive. c. a positive variance of the x values. d. positive relation between the independent and the dependent variables.

Answer 1

Answer:

Option D) positive relation between the independent and the dependent variables.

Step-by-step explanation:

We are given the following in the question:

Covariance between two variable is positive.

Formula:

$\text{Correlation} = \dfrac{Cov(x,y)}{\sigma_x\times \sigma_y}$

Thus, a positive covariance between two variables x and y means there exist a positive relation between the two variables.

Thus, the two variables are positively correlated and the coefficient of correlation has a positive value.

Thus, the correct answer is

Option D) positive relation between the independent and the dependent variables.