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

question 24

Multiple Choice

When performing a rank correlation test, one alternative to using Table A-9 to find critical values is to compute them using this approximation: $$r _ { S } = \pm \sqrt { \frac { t ^ { 2 } } { t ^ { 2 } + n - 2 } }$$
where $t$ is the $t - s c o r e$ from Table $\mathrm { A } - 3$ corresponding to $n - 2$ degrees of freedom. Use this approximation to find critical values of $r _ { \mathrm { S } }$ for the case where $\mathrm { n } = 11$ and $\alpha = 0.01$ .

• A) \(\pm 0.685\)
• B) \(\pm 0.411\)
• C) \(\pm 0.726\)
• D) \(\pm 0.735\)

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The difference between the face value of a bond and its selling price when the bond is sold for less than its face value.

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