The Spearman Rank Correlation Coefficient Is Used to Determine If

question 96

Multiple Choice

The Spearman rank correlation coefficient is used to determine if a relationship exits between two variables when:

• A)one of the variables is ordinal.
• B)both of the variables are ordinal.
• C)both variables are interval and the normality requirement is not satisfied.
• D)All of these choices are true.

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Definitions:

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Market Price

The contemporary financial figure for the trade of services or assets in a marketplace.

Net Present Value

A financial metric used to evaluate the profitability of an investment, which calculates the present value of all future cash flows minus the initial investment cost.

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.