In Determining the Spearman's Rank Correlation Coefficient, What Is Done

question 25

Multiple Choice

In determining the Spearman's rank correlation coefficient, what is done if multiple observations within either variable have the same value?

• A) As the data are assumed to be from continuous distributions, this will never happen.
• B) The observations are ignored and the sample size adjusted accordingly.
• C) The observations are given the mean rank of their positions in the ordered list.
• D) The observations are arbitrarily assigned a rank in sequence.

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Definitions:

Consumer Price Index

An index measuring the change over time in the price level of a market basket of consumer goods and services purchased by households.

Purchasing Power

The real value of money in terms of the quantity of goods or services that one unit of money can buy.

Annual Interest Rate

The percentage rate at which interest is charged or paid on an amount over a year.

Inflation

Refers to the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.