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:

Machine-Hours

A unit of measure indicating the operational time of machinery, often used in manufacturing to allocate costs based on machine usage.

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to individual units of production, calculated at the beginning of a period.

Machine-Hours

The total hours that production machinery is operated within a given period, rephrased as the aggregate operational time of production equipment.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, used as a basis for allocating labor costs to products.