Statistics for Data Science and Business Analysis - Calculating and Understanding Covariance

The video tutorial introduces measures used to explore relationships between variables, focusing on covariance and the linear correlation coefficient. Using a real estate example, it explains how house size and price are correlated. The tutorial details the calculation of covariance, its interpretation, and the limitations of using covariance alone. It concludes by hinting at the correlation coefficient as a solution to these limitations.

How do you calculate the covariance between two variables?

What is the significance of the correlation coefficient in relation to covariance?