Use the Rank Correlation Coefficient to Test for a Correlation $r _ { \mathrm { S } }$

question 74

Essay

Use the rank correlation coefficient to test for a correlation between the two variables. Given that the rank
correlation coefficient, $r _ { \mathrm { S } }$ for 37 pairs of data is 0.324, test the claim of correlation between the two variables.
Use a significance level of 0.01.

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Definitions:

Slutsky Compensated Demand Curve

Represents consumer demand by adjusting for changes in purchasing power, illustrating how quantity demanded varies with price, holding utility constant.

Ordinary Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded, with all other factors being held constant.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting consumers' sensitivity to price changes.

Utility Function

A mathematical representation of a consumer's preference ranking over a set of goods and services.