DEPARTMENT OF TECHNICAL EDUCATION ANDHRA PRADESH

Name Designation Branch Institute Year/Sem Subject Sub-Code Topic Duration Sub Topic Teaching Aids : B. VIJAYA KUMAR : Lecturer : Commercial & Computer Practice (CCP) : GPW/ Guntur : II Yr Sem 4 : QUANTITATIVE TECHNIQUES-II : CCP-403 : CORRELATION ANALYSIS : 50 minutes : Spearman’s RANK CORRELATION-VII : PPT ANIMATION
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Objectives

On completion of this period, you would be able to:
 Know the Merits and Demerits of Spearman’s Rank Correlation

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Recap
Spearman’s Rank Correlation
 Useful where actual item values are not given

6  D2 Formula: r  1N3 - N
Where r = COC, D = Rank Differences, N = No of Pairs

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Recap
RANK CORRELATION - Features
 Sum of differences of ranks between 2 variables is ZERO. i.e., ∑D = 0  It is distribution-free (Non-parametric)  No strict assumptions on population or sample in data collection  It is nothing but Karl Pearson’s COC between Ranks  Interpretation just like Karl Pearson’s COC
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Rank Correlation - Merits
 When compared with Karl Pearson’s COC, Spearman’s Rank Correlation is: (a) easy to calculate; and (b) easy to understand  When ranks of different values of variables are given, spearman’s rank correlation is the only method to calculate correlation

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Rank Correlation - Merits
 When actual values are given, we can give ranks to those value to calculate correlation  Very useful method to compute correlation for qualitative data.  Eg: Honesty, Beauty, Intelligence etc.

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Rank Correlation - Demerits
 Not suitable for Grouped frequency distribution  If the No. of items is > 30, it is difficult to compute ranks and their differences  Lacks precision when compared to Karl Pearson’s COC  All information regarding variables not used
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Summary

 Spearman’s Rank Correlation is easier to calculate  It lacks precision compared to Karl Pearson’s method  This method is useful to measure subjective data.  Eg: Beauty, leadership, intelligence

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Quiz
1) Coefficient of Rank Correlation was propounded by: a) Karl Pearson b) Simpson & Kafka c) Spearman d) None of the above

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Frequently Asked Questions
Short Questions:
3. 4. List out the different methods of Correlation? Write the merits and demerits of Rank Correlation

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Assignment
1) Calculate Rank Correlation for the following data: Age BP 42 132 48 140 43 143 55 142 38 148 52 128

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Assignment
2) For more problems on Spearman’s RANK Correlation, please refer to: a) “Statistics – Problems and Solutions” by V.K.Kapoor b) “Fundamentals of Statistics” by S.C.Gupta c) “Statistical Methods” by S.P.Gupta d) “Quantitative Techniques” by S.L.Agarwal & Bharadwaj e) Any other text book suggested by your teacher f) Previous years’ exam question papers of SBTET
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