The Type of Correlation Coefficient Computed When the Data Are

question 53

Multiple Choice

The type of correlation coefficient computed when the data are from a true dichotomous variable and a continuous variable is

• A)Spearman's rho.
• B)the point biserial correlation.
• C)the phi coefficient.
• D)multivariate analysis.

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Definitions:

Inelastic Demand

A situation where the quantity demanded of a good or service changes very little when its price changes.

Luxury

Goods or services that are considered superior in quality and are often expensive, catering to a more affluent consumer base.

Necessity

A good or service that is considered essential for survival, such as food, shelter, and healthcare.

Income Elasticity

A measure of how much the demand for a good or service changes in response to a change in consumers' income.