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Covariance and Correlation Covariance and correlation describe the degree to which two random variables or sets of random variables tend to deviate from their expected values in similar ways. Independent random variables are uncorrelated,but NOT vice versa.Covariance and Correlation • Covariance and correlation describe the degree to which two random variables or sets of random variables tend to deviate from their expected values in similar ways. • Independent random variables are uncorrelated, but NOT vice versa. 2
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