Spearman's rank correlation coefficient is used to measure the strength of association between two ranked variables. It involves ranking the data values and calculating the differences between the ranks to determine if there is a monotonic relationship between the variables. The coefficient value ranges from +1 to -1, where +1 is a perfect increasing monotonic relationship and -1 is a perfect decreasing relationship. The example calculates the Spearman's rank correlation coefficient between the distance of convenience stores from a museum and the price of water bottles sold. It finds the ranks of the distances and prices, takes the differences of the ranks, sums the squared differences, and plugs the values into the Spearman's rank correlation formula to determine the coefficient value.