Use the Rank Correlation Coefficient to Test for a Correlation

question 9

Essay

Use the rank correlation coefficient to test for a correlation between the two variables. Ten trucks were ranked according to their comfort levels and their prices.
$\begin{array} { c c c } \text { Make } & \text { Comfort } & \text { Price } \\\hline \text { A } & 1 & 6 \\\text { B } & 6 & 2 \\\text { C } & 2 & 3 \\\text { D } & 8 & 1 \\\text { E } & 4 & 4 \\\text { F } & 7 & 8 \\\text { G } & 9 & 10 \\\text { H } & 10 & 9 \\\text { I } & 3 & 5 \\\text { J } & 5 & 7\end{array}$
Find the rank correlation coefficient and test the claim of correlation between comfort and price. Use a significance level of 0.05 .

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Definitions:

Equilibrium

The stage at which the market's demand matches its supply, ensuring price stability.

Emissions Tax

A tax levied on the emission of pollutants, aimed at reducing environmental harm by encouraging cleaner production methods.

Tradable Emissions Permits

A system that allows for the buying and selling of pollution allowances to regulate the total level of certain pollutants.

Equilibrium Price

The cost where the amount of a product or service sought after matches the amount available, achieving equilibrium in the market.