Use the Rank Correlation Coefficient to Test for a Correlation

question 70

Essay

Use the rank correlation coefficient to test for a correlation between the two variables. Use the sample data
below to find the rank correlation coefficient and test the claim of correlation between math and verbal scores.
Use a significance level of 0.05. $$\begin{array} { | l l l l l l l l l l | } \hline \text { Mathematics } & 347 & 440 & 327 & 456 & 427 & 349 & 377 & 398 & 425 \\\hline \text { Verbal } & 285 & 378 & 243 & 371 & 340 & 271 & 294 & 322 & 385 \\\hline\end{array}$$

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Definitions:

Open Economies

refers to countries or markets that engage in free trade with other countries, allowing goods, services, and capital to move across borders with minimal restrictions.

Closed Economies

Economies that do not engage in international trade, relying solely on domestic production for all of their goods and services.

Net Capital Outflow

The difference between the purchase of foreign assets by domestic citizens and the purchase of domestic assets by foreigners.

Net Exports

The surplus or deficit resulting from a country's international trade, calculated as exports minus imports.