Correlation Coefficients May Be Computed for Parametric and Nonparametric Data

question 85

Multiple Choice

Correlation coefficients may be computed for parametric and nonparametric data.If the data are interval data, which of the following should be used?

• A)Pearson correlation coefficient
• B)Spearman correlation coefficient
• C)Gaussian correlation coefficient
• D)De Moivre correlation coefficient
• E)Gossett correlation coefficient

---

Definitions:

Discount Rate

The rate of interest applied to calculate the current value of future cash flows within the discounted cash flow analysis framework.

Future Sum

Refers to the value of a current asset at a specified date in the future based on an assumed rate of growth or interest.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market devices, and other assets.

Retirement

The act of leaving one's job and ceasing to work, usually upon reaching a certain age or for health reasons, often marked by receiving pension or retirement savings.