A Spearman Correlation Is More Appropriate for Interval and Ratio

question 32

True/False

A Spearman correlation is more appropriate for interval and ratio data than is the Pearson product-moment correlation.

---

Definitions:

Common Resource

A resource like air or water that provides users with tangible benefits but is difficult to exclude non-payers from using, often leading to overuse.

Property Rights

Legal rights and claims governing the use, transfer, and disposal of property, which can apply to both tangible and intangible assets.

Market Failure

A situation where the free market fails to allocate resources efficiently, leading to a net social welfare loss.

Private Goods

Goods that are excludable and rival in consumption, meaning their use is limited to paying customers and one person's use of the good prevents another's use of it.