Question

Covariance of X and Y is given by the formula, Cov(X,Y) = ___

• A. $(X-\overline{X})(Y-\overline{Y})$
• B. $\frac{(X-\overline{X})(Y-\overline{Y})}{N}$
• C. $(X-\overline{X}{)}^2(Y-\overline{Y}{)}^2$
• D. $\frac{(X-\overline{X}{)}^2(Y-\overline{Y}{)}^2}{N}$

Answer 1

The correct option is B

$\frac{(X-\overline{X})(Y-\overline{Y})}{N}$

$Cov(X,Y)=\frac{(X-\overline{X})(Y-\overline{Y})}{N}$