Covariance, Clearly Explained!!!

Covariance is one of those statistical terms that you might have heard before but didn't quite understand. It sounds fancy, but it's really quite simple and it is a computational stepping stone to many other interesting concepts like correlation. This video describes covariance, what it does and doesn't do, how it's computed, and why it is more useful as a computational stepping stone rather than an end in itself. NOTE: This StatQuest assumes you already know about "variance". If not check out the quest: https://youtu.be/SzZ6GpcfoQY And if you are interested in Part 2, which explains Correlation, here's the link: https://youtu.be/xZ_z8KWkhXE For a complete index of all the StatQuest videos, check out: https://statquest.org/video-index/ If you'd like to support StatQuest, please consider... Patreon: https://www.patreon.com/statquest ...or... YouTube Membership: https://www.youtube.com/channel/UCtYLUTtgS3k1Fg4y5tAhLbw/join ...buying one of my books, a study guide, a t-shirt or hoodie, or a song from the StatQuest store... https://statquest.org/statquest-store/ ...or just donating to StatQuest! https://www.paypal.me/statquest Lastly, if you want to keep up with me as I research and create new StatQuests, follow me on twitter: https://twitter.com/joshuastarmer 0:00 Awesome song and introduction 0:24 Review of variance 1:07 Motivation for Covariance 5:59 Types of Covariance relationships 7:32 How to calculate covariance 17:00 Why covariance is hard to interpret 20:31 Motivation for Correlation 21:20 Summary Correction: 16:45 We should be dividing by 4-1, not 5-1. Oops! :) #statquest #covariance