—_ - Haron) rel statistics | tovantunes, via jis re (ovantunce!~ "In pwbabitit, oh Un Joint vari of tor Tandom Jarlables. dy" for tw ue ee wtol-Valued -candom Varbba x &Y with finite A monent s ie, Elx*)<02, Hy ova raver, a olefined as ' CovlKY) = ECCx-% (YA) - “The covariance ss alec tromehimes clonoted a Ty o 1X) gna fom: Cov (%Y) = ECU¥)(y-7]]. FE[XY-XY-Ry 4-7 F J, EX) ~EXV)-E(xy) +179) FH E(KKY) ~YE(X) — VELy) +RY = EU) -YE AX AKT COvl4y) = EOXY)- ELO-E(y) “Lrtuitivey, phe tovariance betwen X Oud ¥ indicates howd Hne values ek move sulative to each other velies of, X tunel to happin with Lasge. Valuses of Y ay J - ihve gn owesage. In Tha cose, + (-ELO)CLY- ELY) ws posihe eo sas “ Covariance ‘u poviive oe sy Pee Sa large, then O-E(x))( YOU VER Hnda fo be Mimalt whtn Ce yk, asnrtince is nigative reget, on awesnge- Tn thu ly govrelatel x ait y ey a yet> - . ear te vernon. of) He cowniamee, ealite a4 covvelation 4 ~ However, Bhows by its masoitude ate aasemih of the dives sulatien . d P= fowl) | Var) Svar) tohak 14 De Difference. bua tovavance om Losselation > © Covariance measures De clnecion of a rtlahowhip bebiten tro Variables , while apochbies yeast fhe Abrength of Hat sabstionp- 5) Both correlh'en covariance ans porthve ok vorebles move in Ye dame direction, aud ve wh move in oppostte OL aection ) A epveclation ficient must always ba bls LX [evith the exhene Values indicating a piney pelationtip- ft covariance, Lies bebo —o@ tw Di ce bby coranianee aud yanince > Covaniance oma vartuce ase both cused to vntaseire, Tre distribution of prints jw adata per - . : : poed in dota Beta voith one Variable: > Ulver gfe tose pebea data pets are clustered asrund He average. > Cravionce measures the direchon a, Hee >tbdionskip Lb] hoo variable © A positive Covarnmce Means thot both Variables tend +r be sigh oy ow ot He Aane He. @&* negabre eovatonee ratoud Phok vdhew one Variobe us highs dhe other tends to be dow -, Uncorrelated ners Amd Independence Raomdom Vandbler whose Covinane 16 Tew are colleol uncorrelated: Property If X amd ge indepeudent Tandem variables, then Cov(x,¥)20. | Because Undty inolependemce , | EON) EOE) = lw(x%¥)=0 However, He converse is not go true: Bir Lae X hae unifnnday abisbibuded le EF] and Yo gems Atm that ond Y cure not independence , Auk Gov (XY) = EX) — EOOECY) = EX!) -— ECMEOY Eley — (14 de EX?) “eit [= ! 2 eo Htyh 1G EXD Gr), 2Ay 22a Suefrc ie LUA EO? =o : seed Tn thi cose, He aye lationsl'p Aelweew XoudY se None -anear bi ee he cePrpertice of, le. covanance:- Q) Covariance with itcelly: fox a vranclam variable X; Gv XX) = Vasbo) By difiniHer, aaa Cov (4X) = ELKX) - ECE) \ = EU?)- (EX) = Varlx)- fe Vamauce is a mpecial fase of He wovanauce in whic Ve two varishles aru ipletical - (D For real-valued random Variable X aud a Ja Atal —valiutal Const Hw Cov(% a) =0 Lol Cov (%,0) = E(ka) ~ E(X)-Ela) rOe(s) — 2 EX) Sets @ Covariance ‘ua _Aymmetic X,Y are seal valued cpnudone Variables Hew Covl¥/¥) = Govt *) ef oul Y= EQYW— EWEN) = E( yx) — ElY)-€lx) = Cov V,X) @ Wh XY Zare real-valuel condom variables Hew Gov (Xt, 2) = wv (42) tov l 42) Pros. lov (X42 = eEL(ay) z]- ELH) Elz) 2 Ee (x22) - [LE OH EWI E®) = EVX%) - EQUE(z) +€(YZ)- EL) E(z) a = lov (%,%) -+ vl Y,Z) Bry S ME x¥ ane neal velueal random variables oul dyb are xeal~ Pow - ae py)eabovlXY) 3 Cv(xtaN4b)= lov (y,¥) woh yy fax, bY =ELLDUEYT FLARE EY) = Elobyy] ~ AE Lx): BELY) = abe (XY) — ab E(x). Ely) = ab] E(XY-E0W-El : = ab wvtx¥) :bv K+a, Ytb)= EL(xta-El era) pyrb- EP) =ELLta-EW)- Lyre» = ELLER) (YE = lov)w + Tho steps Appmach:to find dovtw¥)= E(xy)- ELEC) Stepti- Fj ber discacte Skepl- Find Marginal dnote of X aud | : Continuous step2= — Find €xpection of x, YX*Y : Tye 1. [for Discrete Vanables) Hheue volus-F,0, 1 } Sim Let Kane be tor random voviauies each +aking awd having tle jot prbabilig distribution is my jo tt —1[0 | ete! o 0.2 |0-2 2 1 ° Te for lo ‘ : Prove rok ¥ oud ¥ ane Ay iptentet expectations aud eye uncoveelele lie Hawpinel of y i Marginal of YU ; * ott y) —)elt PLO] 0-2 [Ob] 02 Ply) {o+2 ford [od Elwe=Z ypty) E(x Je PLO = C).[02) +or(0-6) (9(04) Lf0-2)4 (090-4) HL IO) =o =o. ELOFELY) 2 xAy hove di fyeent expectahin. aa ja de pave Covlurt=o te fe EUY)— EOOE(Y)=0 EMME DD XyPOUD 2 ED(D0 + ED(0).O-14 (AMO + ~~~ =o Ths Cayl x Y= ElxY) ~EO0-ELy) = O-0@2) 5: D Vamee, XZY Arw Uncoveelocteol “a + (1020.1) 3%ey: hoe aoe —— Ge The joint prbabisi ; dy * ¢€ J AY mans puncion of X and ¥ we Jive blog oD os , 5 Find the covanamee. 91 (%Y) ol Tk marginad. oh an Z Marginal of Y is . a wore be ei a oh EOD = FHA) =(O(L)EOBYey, EWM=ZyPly)=0{4)4u G)- z= ELOY) = Zany Pliny) = POD (f)4 OU S4 UE 24 (M0) lee q Meme Covi ye BUY) ~ E00 EY) =o-1.t= | 2iGae oy te LEX amd Y ane two independent sawelom Viamables wri Hh mean BL10 ond gpardesd cleviation 243 puspactreley fird Hee covariance bl 3ytuy ond SX-Y- 1. (niven thet EOO= S E10, vere 4, Vvas(Y¥)=q Leb Ue 3x44 & V=3x-¥ El vle BEODEUEMIAIS HPSS Tage EWE BE(O- EV/)= 15-1025 Covlu,V)= ELUV)-E( EW) E(UW=Elarrany-4 7) Se i as =a elOAIEVD-HEY) EU) -€00-E) = Afus 28) FHSD00)— MEI H 05] Ses a =50 . oa Nast) = £02)-[E0)) = 4425-29Cov (U,V) =ElUY) EL: EW) = ou7-(ssyls) =—28 Se pet X24 be joint distributed with He govrtlation Loefpicieut % : 14 HO. Find. Nar (oxX-4Y+3) - ee The Vanamce of XK inl sivas thak OwYeL, NarlAle "7 Vart = 9: Fie} “ na Vax (2X-4Y43) =Var(2x-uyrvat > = Vayl 2% -yy)+ 0 nce Varl(3) =O - =u Vasbd- 16 Vad 4812): 4): covlX,¥) = y(yj—16 (4) — 1b(4) (6) vse = 2 sus ov) = 2 yar(X) ° vastY) cot =(L) ya =lué= 3 2