One Formula for the Correlation Between a Continuous Variable and an Artificially

question 15

Multiple Choice

One formula for the correlation between a continuous variable and an artificially dichotomized variable is

• A)Spearman's rank order formula.
• B)the point biserial correlation.
• C)the phi coefficient.
• D)the biserial correlation.

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Definitions:

Commission Charges

Fees paid to an agent or company for facilitating a transaction, often a percentage of the transaction value.

Proceeds

The amount that a seller receives from the buyer of a note being discounted; the difference between the maturity value and the discount amount. In a stock transaction, the proceeds received by the seller are equal to the selling price minus the commission.

Differential Rate

A variable rate that applies to a specific portion of a loan or deposit balance, often used to encourage higher balances with better rates.

Commission Charges

Fees levied by a brokerage for conducting transactions on behalf of a client, often determined as a percentage of the transaction value.