Page 5 - FINAL CFA II SLIDES JUNE 2019 DAY 2
P. 5
LOS 7.a: Calculate & interpret a sample covariance and a MODULE 7.1: COVARIANCE & CORRELATION
sample correlation coefficient and interpret a scatter plot.
A statistical measure of the degree to which the two variables move together (+ve = they move same direction; -ve they move in opposite directions)
SAMPLE CORRELATION COEFFICIENT (r)
A measure of the strength of the linear relationship (correlation) between two variables
