In statistics, covariance serves as a relation between the variables and exploring their manual dependencies. As the concept in the data analysis, it provides a huge and valuable insight for changing the variable which is associated with the change in another. For this purpose, the covariance calculator by calculatored is the best way by which we can calculate the statistical relation between the two sets of population data.
In this article, we shed light on some factors with their examples to illustrate their purpose in the best way and tell you the various applications in various fields. In this, we also revolutionising the way of precision and interpreting data.
What Is Covariance?
The covariance is the measurement that quantifies the degree to which the two variables change together and uses the assessment between two random values to get the variability.
When the variable is positive it shows you that this will tend to increase or decrease. The online covariance calculator computes the covariance between two random variables.
How Do Evaluate The Covariance Online?
By the following formula, we can find the covariance online between the two changing values X and Y with the n data point. The formula is as follows:
Cov(X, Y) = Σ [(Xᵢ – X̄) * (Yᵢ – Ȳ)] / n
In the Covariance Formula:
- Xᵢ and Yᵢ = individual data points
- X̄ and Ȳ = the means of X and Y
- Σ = the sum of all data points
Calculating Covariance: Step-by-Step Guide with Real Examples
For instance, we take into account some values to evaluate the covariance. The procedure can make easy with the help of the covariance calculator or if you want to calculate them manually then find by the above-given formula and verify the answer with the help of this incredible tool.
If X has the values of 2.1, 2.5, 3.6, and 4.0 and we also conclude that the mean of X is (3.1) and the Y has the values 8, 10, 12, and 14 so we evaluate that the mean of the Y is (11).
Cov (X,Y) = ΣE((X-μ)(Y-ν)) / n-1
Cov(X,Y) = (2.1-3.1)(8-11)+(2.5-3.1)(10-11)+(3.6-3.1)(12-11)+(4.0-3.1)(14-11) /(4-1)
Cov(X,Y) = (-1)(-3) + (-0.6)(-1)+(.5)(1)+(0.9)(3) / 3
Cov(X,Y) = 6.8/3
Cov(X,Y) = 2.267
However, from this example, you got a positive covariance, which means that the variables are positively related.
Positive, Negative, and Zero Covariance Explained:
There are three possibilities of covariance. It indicates the measurement of the relationship between two variables. The possibilities are as follows:
When the value of the covariance is positive then we say that it tells us about the variables either it increases or decreases. It suggests to us the direct relation between the available variables.
When the covariance is negative then we say that one variable may increase and the other may decrease. A negative covariance indicates the inverse relation between the variables.
When the covariance is close to zero it indicates the linear relation between the variables. The covariance calculator gives the best estimation of these terms whether it is positive, negative, or zero. For more information keep on visiting My Architecture’s Idea.