In Regression Analysis We Use the Spearman Rank Correlation Coefficient

question 16

Multiple Choice

In regression analysis we use the Spearman rank correlation coefficient to measure and test to determine whether a relationship exists between the two variables if:

• A) one or both variables may be ordinal
• B) both variables are interval but the normality requirement is not met
• C) both one or both variables may be ordinal and both variables are interval but the normality requirement is not met
• D) neither one or both variables may be ordinal nor both variables are interval but the normality requirement is not met
• E) none of these

---

Definitions:

Return on Total Assets

Return on total assets (ROTA) is a financial ratio that measures the profitability of a company in relation to its total assets.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenues.

Beginning Total Assets

The total value of all assets owned by a company at the start of a financial period.

Ending Total Assets

Ending Total Assets refer to the total value of all assets owned by a company at the end of a financial reporting period.