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 22 32 4 3 4-3= 1 1
2 27 39 3 2 3-2= 1 1
3 28 40 2 1 1 1
4 15 20 5 7 -2 4
5 32 21 1 6 -5 25
6 14 22 6 5 1 1
7 07 16 8 8 0 0
8 09 30 7 4 3 9
∑d2 = 42
No of pairs of observations = n = 8

6Σ𝑑 2
r=1-
𝑛 (𝑛 2 − 1)
6∗42
r=1-
8(64− 1)
252
r=1-
8∗63
252
r=1-
504
r = 1 - 0.5
r = 0.5