Short cut method

Example
 Steps for Calculation
• Choose convenient values as assumed mean of two series, X and
Y.

• Deviations(now dx and dy instead of x and y) are obtained from

the assumed means.

• Obtain the sum of dx and dy columns, that is, ∑dx and ∑dy.

• Deviations dx and dy are squared up and their totals ∑ dx2 and ∑

dy2 are obtained.

• Finally obtain ∑ dxdy which is the sum of the products of

deviations taken from the assumed means in the two series.
Sollution
• This shows a high degree of correlation
between amounts of radio time(x) and
number of electrical appliances sold(y).
• If we examine carefully the formula used for
the shortcut method with that used with
actual arithmetic mean are used, we would
find that (∑dx * ∑dy)/N is the correction factor
in the numerator and (∑dx)² /N and (∑dy)²/N
are the correction factors introduced in the
denominator on account if the use of assumed
means in place of actual means.
 Spearman’s Rank
Correlation Method
 Meaning
• If the values are ranked in decreasing or increasing order,
the correlation between these ranks in rank correlation
and the coefficient of correlation computed between
these ranks is called coefficient of rank correlation.
r = 1 - 6∑D2
(N3 – N)

∑D2 =total of sqaures of the diff. between ranks

N =number of pairs of observation
r =coefficient of rank correlation
Calculation of Coefficient of Rank Correlation

1. If the ranks are given

2. If the ranks are not given

The following are the marks of 8 students in statistics and
mathematics. Find the coefficient of correlation

Marks in 25 43 27 35 54 61 37 45
Statistics
Marks in 35 47 20 37 63 54 28 40
Mathematics
Solution

r= 1 - 6∑D2 = 1 - 6 x 14
(N3 – N) 64 - 8

= 1 – 0.1667 = 0.8333
 Problem of Equal Ranks
• It is possible sometimes that the values may be
repeated twice or thrice in the series. In such
cases average rank is assigned to the similar
items.
• The average rank is calculated by dividing the
sum of the ranks by the n numbers of repetition.
• Then the rank correlation is calculated by adding
1/12(m3-m) in the simple correlation of rank
formula.
 Merits of Rank Coefficient of Correlation
Method

1. Simplicity
2. Compulsory Calculation
3. Useful for data of qualitative measures
4. Same result
 Demerits of Rank Coefficient of Correlation
Method

1. Unsuitable for group frequency distribution

2. Unsuitable if values of the series exceed 30
3. Lacking precision