The Appropriate Correlation Coefficient for Measuring the Direction and Strength

question 1

Multiple Choice

The appropriate correlation coefficient for measuring the direction and strength of the linear relationship between one continuous and one dichotomous variable is

• A)the Spearman rank-order correlation coefficient
• B)the point-biserial correlation coefficient
• C)the phi correlation coefficient
• D)none of the above

---

Definitions:

Regression Equation

A statistical method that models the relationship between a dependent variable and one or more independent variables to predict outcomes.

Random Factors

Unpredictable variables that can impact the outcome of a study, experiment, or business scenario, often beyond the control of the participants or management.

Time And Motion Studies

A business efficiency technique combining the time study work with motion study to standardize procedures and establish proper work methods.

Cost Estimation

The process of predicting the costs associated with the production of products or the delivery of services.