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I've looked at a few of these types of posts but can't seem to find a concrete answer. I am investigating the relationship between 'risk aversion' and 'human capital' for a project.
Risk aversion: Acceptable risk is used as a measurement and it takes a value between 10% and 100%, in increments of 10%. (I.E. 10 possible values where 10% = risk taker and 100% = risk averse). [DISCRETE]
Human capital: Represents the present value of all future earnings and depends on a number of factors including age, salary and occupation. [CONTINUOUS]
I performed a Pearson correlation between these two variables without really looking into the specifics too much. It finds a small negative correlation which is as expected.
However, I have since then read that the Pearson correlation is only designed to measure the correlation between two continuous variables and so I don't think I can use this result. Am I correct in saying this and if so how can I test this relationship (including significance).