Which of the following is FALSE about Correlation and Covariance?
A. A zero correlation does not necessarily imply independence between variables.
B. Correlation and covariance values are the same.
C. The covariance and correlation are always the same sign.
D. Correlation is the standardized version of Covariance.
Answer:B
Which of the following is FALSE about Correlation and Covariance?
A. A zero correlation does not necessarily imply independence between variables. B. Correlation and covariance values are the same. C. The covariance and correlation are always the same sign. D. Correlation is the standardized version of Covariance.
Explanation: Correlation is defined as covariance divided by standard deviations and, therefore, is the standardized version of covariance.