What Is the Sum of Squares of the Ranking Differences

question 78

Multiple Choice

$$\text { Two students were asked to rate six different television shows on a scale from } 0 \text { to } 10 \text {. The data are shown in the following table: }$$
$\begin{array}{|l|c|c|c|c|c|c|}\hline \text { Show } & \mathrm{A} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} & \mathrm{F} \\\hline \text { Student 1 } & 10 & 8 & 6 & 4 & 3 & 7 \\\hline \text { Student 2 } & 7 & 9 & 3 & 4 & 0 & 5 \\\hline\end{array}$ What is the sum of squares of the ranking differences (to be used to calculate the Spearman Rank Correlation Coefficient) ?

• A) 16
• B) 12
• C) 8
• D) 4

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets, without selling inventory.

Liquidity

The ease with which an asset, or security, can be converted into ready cash without affecting its market price.

Asset Management

The process of effectively managing and investing in assets to increase their value or yield.