The Spearman Rank Order Correlation Coefficient Differs from the Pearson

question 45

Multiple Choice

The Spearman rank order correlation coefficient differs from the Pearson correlation coefficient in that the Spearman rank order correlation:

• A) primarily establishes a weak association between variables, whereas the Pearson correlation coefficient establishes a strong association between variables.
• B) is used when variables have been measured using ordinal scales, whereas the Pearson correlation coefficient is used when variables have been measured using ratio scales.
• C) assumes that variables have a normally distributed population, whereas the Pearson correlation coefficient assumes that variables have a uniform distribution.
• D) is used for linear relationships, whereas the Pearson correlation coefficient is used for curvilinear relationships.
• E) is a qualitative measure of the degree of variation, whereas the Pearson correlation coefficient is a quantitative measure of the degree of variation.

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Definitions:

Indirect Expenses

Expenses that are not directly linked to specific product production or service provision, such as utilities and rent.

Fixed Expenses

Expenses that do not change with the level of production or business activity, such as rent, salaries, and insurance premiums.

Departmental Cost Analysis

The process of evaluating and breaking down the costs associated with each department within an organization, facilitating budgeting and efficiency improvements.

Direct Costs

Direct costs are expenses that can be directly traced to the production of a specific good or service, without any allocation.