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.

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Definitions:

Disposable Income

Disposable income refers to the amount of money that individuals or households have available for spending and saving after income taxes have been accounted for.

Autonomous Consumption

The level of consumption that occurs when income is zero, reflecting the expenditure necessary to meet basic needs.

Saving Function

Is an economic concept describing the relationship between saving and income, indicating how changes in income levels affect the amount of money individuals save.

Consumption Function

A macroeconomic expression that defines the relationship between total consumer expenditures and gross national income, indicating how income affects spending patterns.