For the Coefficient of Rank Correlation, What Scale Is Used

question 58

Multiple Choice

For the coefficient of rank correlation, what scale is used to measure the data?

• A) nominal
• B) ordinal
• C) interval
• D) ratio

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Definitions:

Probability Distributions

Mathematical representations that outline every potential value and their probabilities for a random variable across a specified interval.

Risk

The potential that an investment's actual return will differ from the expected return, encompassing the possibility of losing some or all of the original investment.

Real Option

A real option is a financial concept that represents the choice to undertake certain business initiatives, such as expanding, deferring, or abandoning a project, based on future opportunities.

Expected NPV

The anticipated Net Present Value of an investment, calculated using expected cash flows and discounting them to their present value.