Which Correlation Coefficient Should We Use If We Want to Find

question 26

Multiple Choice

Which correlation coefficient should we use if we want to find out whether a relationship exists between two variables that are both interval or ratio variables?

• A)The Pearson correlation coefficient
• B)The Spearman rank-order correlation coefficient
• C)The point-biserial correlation coefficient
• D)The nonlinear correlation coefficient

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Definitions:

Processing Department

A processing department is a division within a manufacturing operation where a specific type of process or series of operations is performed on products.

Cost System

A method or process used by a company to capture, measure, and allocate costs to products, services, or other cost objects.

Conversion Cost

The combined cost of direct labor and manufacturing overheads, which are necessary to transform raw materials into finished goods.

Equivalent Unit

represents a measure used in process costing, converting work-in-process into the number of finished units, facilitating cost allocation.