Which of the Following Is a Requirement When Computing Spearman's

question 16

Multiple Choice

Which of the following is a requirement when computing Spearman's rank-order Correlation coefficient?

• A)nominal level data
• B)interval level data
• C)ordinal level data
• D)b and c

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Definitions:

Net Present Value

Net present value is a financial metric that calculates the value of a series of cash flows by discounting them back to their present value using a specific rate.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and not expected to be converted into cash in the short term, like buildings, machinery, and land.

Tax Shield Approach

A method of reducing taxable income through allowable deductions such as depreciation, resulting in lower tax payments.

Operating Cash Flow

The cash generated from normal business operations, indicating a company's ability to generate sufficient revenue to maintain and grow its operations.