Pearson's vs. Spearman's Correlation Coefficient

Objectives

• Students will explore both Pearson’s Product Moment Correlation Coefficient (PPMCC) and Spearman’s Rank Correlation Coefficient (SRCC), how to decide which will fit the given scenario better, and the appropriateness and limitations of each.
• Students will be asked to use their handhelds to discuss and analyze given sets of data, and describe their results in the context of the problems.
• Students will try to make a connection with how to understand these topics in IB Mathematics courses and on their final assessments.

Vocabulary

About the lesson

Before this activity is started, some background knowledge must be given on amortization tables. Amortization tables are quite useful when discussing the payback of loans. They are used as ways of calculating the value for business assets over time. This activity will ask students to use their handhelds often. During this activity, students should be familiar with finding and using the finance solver and amortization table.