If You Wanted to Compute the Correlation Between Two Interval-Level

question 27

Multiple Choice

If you wanted to compute the correlation between two interval-level variables,which type of correlation should you use?

• A)point biserial
• B)phi
• C)Spearman rank
• D)Pearson

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Definitions:

Purely Competitive Industry

A market structure where many firms sell identical products, and no single company can influence the market price due to competition.

Profit

The financial gain realized when the revenue gained from a business activity exceeds the costs, expenses, and taxes needed to sustain the activity.

Normal Profit

The minimum level of profit necessary for a firm to remain competitive in the market, essentially covering opportunity costs.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded in a market.