Factual
How can you decide whether to use Pearson, Kendall, or Spearman as a method for correlation?
When would you want to see a small degree of freedom in the correlation results?
Most of the examples used common default parameters. Explore the same examples with nondefault parameters.
When, how, and why?
Why do the polychoric functions take so long to process?
Why are the values chosen in the polychoric responses correlated?
Explain the threshold values that were calculated.
Challenges
Is there an easier way to develop the 2 x 2 matrix needed as input to the tetrachoric function?
How could you account for trends in investment vehicles when analyzing stock market returns versus fixed instruments?