DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : B. VIJAYA KUMAR
Designation : Lecturer
Branch : Commercial & Computer Practice (CCP)
Institute : GPW/ Guntur
Year/Sem : II Yr Sem 4
Subject : QUANTITATIVE TECHNIQUES-II
Sub-Code : CCP-403
Topic : CORRELATION ANALYSIS
Duration : 50 minutes
Sub Topic : Spearman’s RANK CORRELATION-VII
Teaching Aids : 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  1-
N3 - 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. List out the different methods of Correlation?

4. Write the merits and demerits of Rank Correlation

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Assignment

1) Calculate Rank Correlation for the following data:

Age 42 48 43 55 38 52

BP 132 140 143 142 148 128

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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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