Use the Rank Correlation Coefficient to Test for a Correlation

question 7

Essay

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

Workers

Workers refer to individuals engaged in any form of economic activity or labor, often for compensation, within various sectors of an economy.

Price-Taking Farmer

An individual farmer who does not have the ability to set the prices for their goods but instead accepts the market price.

Corn Output

The total quantity of corn produced within a given period, often measured in bushels or tons.

Profits

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes.