The Point-Biserial Correlation Coefficient Is Used to Measure the Correlation

question 57

True/False

The point-biserial correlation coefficient is used to measure the correlation between two dichotomous variables.

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Definitions:

Expected Utility

A theory in economics that calculates the utility expected from different choices, aiming to predict an individual's preferences under uncertainty.

Risk-neutral

Refers to being indifferent to risk, showing no preference toward either risk-taking or risk-avoidance behavior.

Payoffs

The returns or benefits gained from a decision or action, often used in the context of strategic decisions or games.

Trade-offs

The concept of sacrificing one good or action to obtain another, acknowledging that having more of one thing likely means having less of another.