Subject : Business Statistics

Unit 1 : Linear Correlation

Topic : Practical sum of Spearman's Rank Correlation Method

Prepared by : Prof. Monti Daredi

Question :

Find Coefficient of rank Correlation between x and y.

No of x Y Rx Ry d = Rx - Ry d2
observations
1 60 35 4.5 6.5 4.5-6.5=-2 4
2 72 30 1 8 -7 49
3 42 52 8 2 6 36
4 40 60 9 1 8 64
5 45 48 7 4 3 9
6 50 50 6 3 3 9
7 60 36 4.5 5 -0.5 0.25
8 61 35 3 6.5 -3.5 12.25
9 66 22 2 9 -7 49
∑d2 = 232.5

No of pairs of observations = n = 9
4+5
Average rank of 60 = = 4.5(m = 2)
2
6+7
average rank of 35 = = 6.5(m = 2)
2

𝑚 (𝑚 2 −1) 𝑚 (𝑚 2 −1)
6[∑𝑑 2 + 12
+ 12
]
r=1–
𝑛(𝑛 2 −1)
2 4−1 2 4−1
6[232.5+ 12
+ 12
]
r=1-
9(81−1)
6[232.5+0.5 +0.5]
r=1-
9∗80
6(233.5)
r=1-
720
1401
r=1-
720
r = 1 - 1.95
r = -0.95
observation No.of times 𝑚(𝑚2 − 1)
repeated (m) 12
60 2 2(4 − 1) 0.5
12
35 2 2(4 − 1) 0.5
12
C.F. = 1

6[∑𝑑 2 + 𝐶.𝐹.]
r=1–
𝑛(𝑛 2 −1)
6[232.5+1]
r=1-
9(81−1)
6(233.5)
r=1-
9∗80
1401
r=1-
720

r = 1 - 1.95
r = - 0.95