When Performing a Rank Correlation Test, One Alternative to Using $$r _ { S } = \pm \sqrt { \frac { t ^ { 2 } } { t ^ { 2 } + n - 2 } }$$

question 70

Multiple Choice

When performing a rank correlation test, one alternative to using the Critical Values of Spearman's Rank Correlation Coefficient table to find critical values is to compute them using this approximation:
$$r _ { S } = \pm \sqrt { \frac { t ^ { 2 } } { t ^ { 2 } + n - 2 } }$$
where $\mathrm { t }$ is the $\mathrm { t }$ -score from the $t$ Distribution table corresponding to $\mathrm { n } - 2$ degrees of freedom. Use this approximation to find critical values of $\mathrm { r } _ { \mathrm { S } }$ for the case where $\mathrm { n } = 17$ and $\alpha = 0.05$ .

• A) \(\pm 0.311\)
• B) \(\pm 0.482\)
• C) \(\pm 0.411\)
• D) \(\pm 0.480\)

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Definitions:

Ending Inventory

The total value of a company's inventory available at the end of an accounting period, instrumental in calculating the cost of goods sold.

Purchased Units

Units of goods or services acquired through purchase, often used to refer to inventory items bought for resale in business operations.

Perpetual Moving Average

A method in inventory management where the average cost of inventory is recalculated after each acquisition or sale, ensuring up-to-date and accurate inventory valuations.

Ending Inventory

The total value of all the inventory a company has on hand at the end of its fiscal period, computed under specific costing methods.