Generally speaking, if two variables are unrelated (as one increases, the other shows no pattern), the covariance will be:
A. a large positive number.
B. a large negative number.
C. a positive or negative number close to zero.
D. None of these choices.
Analysis:
A. Incorrect. If two variables are unrelated (as one increases, the other shows no pattern), the covariance will be a positive or negative number close to zero.
B. Incorrect. If two variables are unrelated (as one increases, the other shows no pattern), the covariance will be a positive or negative number close to zero.
C. Correct. If two variables are unrelated (as one increases, the other shows no pattern), the covariance will be a positive or negative number close to zero.
D. Incorrect. If two variables are unrelated (as one increases, the other shows no pattern), the covariance will be a positive or negative number close to zero.
ANSWER : C
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