Anne Has Two Ordinal-Level Variables in a Data Set

question 72

Multiple Choice

Anne has two ordinal-level variables in a data set. Which of the following should she use to calculate a correlation between these two variables?

• A) Spearman rho
• B) Pearson r
• C) Alpha coefficient
• D) Kappa tau

---

Definitions:

Total Cost

The sum of fixed and variable costs.

ATC

Stands for Average Total Cost, which is the sum of all production costs divided by the quantity of output produced, encompassing both variable and fixed costs.

MC

Marginal Cost represents the change in total cost that arises when the produced quantity of a good is incremented by one unit.

Perfect Competitor

A market situation where numerous buyers and sellers exist, products are identical, and no individual buyer or seller can influence the market price.