
This Excel tutorial explains how to calculate sample covariance using COVARIANCE.S and calculate population covariance using COVARIANCE.P
Covariance
Covariance is a measure of how much two random variables change together.
The below formula is for calculation of Population Covariance. For Sample Covariance, divide n-1 instead of N.
While σx is denoted as standard variation of x, σxy is denoted as Covariance.
After we calculate the covariance, we can check the sign whether it is ne...
Read More