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Assignment - This is an individual assignment in which cooperation is not allowed. Reference all sources.
Using academic sources, write a short report on two topics: correlation and auto-correlation. Explain for both topics:
1. How does one calculate (auto) correlation coefficient?
2. How to interpret the value of (auto) correlation coefficient:
3. Potential problems that can arise when using (auto) correlation coefficient.
Attach illustrations from academic sources showing how (auto) correlation is used in business context.
Note - Graphs and appropriate formulas should be mentioned.
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When we are trying to determine the rank correlation between two judges (the researcher was eager to know whether the two judges rating are almost alike or different), then, we use Spearman Rank Correlation. This correlation typically works on rank ordered data and the interpretation remains the same as that of Pearson correlation coefficient.
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