We Use Spearman's Rank Correlation to Find Whether There Is

question 4

Multiple Choice

We use Spearman's Rank Correlation to find whether there is a strong association between two variables. We find that the Spearman's rho is equal to 0.18 for the sample size n = 7. The correct value of the test statistic to determine whether two variables are dependent on each other is

• A) 0.409.
• B) 0.754.
• C) 0.875.
• D) 0.771.
• E) 2.42.

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Definitions:

Total Revenue

The total receipts from sales of goods and services to customers; it is the unit price times the quantity of goods or services sold.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level.

Price Elasticity

A metric evaluating the sensitivity of the amount of a good purchased to price fluctuations.

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing to purchase.