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Covariance Concept and Calculation

Jun 11, 2025

Overview

The lecture introduces the concept of covariance, explaining how it measures the relationship between two traits by considering the deviations of data points from their respective means.

Covariance Explanation

  • Covariance quantifies the relationship between two traits (variables) by analyzing how they vary together.
  • To compute covariance, first find the mean of each trait (X and Y).
  • For each data point, calculate its deviation from the mean for both X and Y.
  • Multiply these deviations for each data point (e.g., deviation in X times deviation in Y).
  • Sum all these products across all data points; this sum forms the numerator for covariance calculation.
  • If both deviations are negative or both positive, the product is positive, increasing the sum.
  • If one deviation is positive and the other negative, the product is negative, decreasing the sum.
  • A positive covariance indicates traits increase together; a negative covariance indicates one increases as the other decreases.

Key Terms & Definitions

  • Covariance — A statistical measure indicating the direction of the linear relationship between two variables.
  • Deviation — The difference between a data point and the mean of the dataset.
  • Mean — The average value of a set of numbers.

Action Items / Next Steps

  • Practice calculating covariance with different data sets.
  • Review the formula for covariance and understand each component.