Exhibit 13-1: Identify the Kind of Correlation Appropriate for Use

question 117

Multiple Choice

Exhibit 13-1: Identify the kind of correlation appropriate for use in solving each of the following problems.
-Refer to Exhibit 13-1.To find the relationship between male or female responses on a survey item answered "yes" or "no."

• A) Pearson's r
• B) Spearman rho
• C) phi coefficient

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Definitions:

Financing Activity

Involves transactions related to a business's funding, including obtaining or repaying capital, issuing shares, and paying dividends.

Investing Activities

Financial transactions related to the purchase and selling of long-term assets and other investments not considered as cash equivalents.

Long-term Assets

Assets that are expected to provide economic benefits over periods longer than one year, such as buildings, machinery, and land.

Short-term Investments

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.