Covariance function example

1. What is the formula for COV XY?
2. How do you explain covariance?

What is the formula for COV XY?

The covariance between X and Y is defined as Cov(X,Y)=E[(X−EX)(Y−EY)]=E[XY]−(EX)(EY).

How do you explain covariance?

Covariance is a measure of the relationship between two random variables and to what extent, they change together. Or we can say, in other words, it defines the changes between the two variables, such that change in one variable is equal to change in another variable.