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What is Empirical covariance and empirical correlation coefficient?
When the data collection of random variables is computed by means of statistics, no matter the data numbers are one or more number of variables, then the term is known as empirical covariance. The complete covariance in an empirical value is based on the observation of data in a proper way. It is in a matrix form in which the different elements are known by observing. A variance express the data in a proper way. The correlation coefficient is very important to know and this explains how the covariance is related to correlation by means of the different observations.
The relationship between covariance and correlation can be positive or can be negative. The values depend on the various factors either these are dependent variables, independent variables, the sample mean of the variables. The various values of correlation coefficient can be 1 , 0 or-1.
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