Spearman Rank Correlation

Coefficient or Spearman RHO

 A Spearman rho correlation of coefficient is a statistics which is used to measure
the relationship of paired ranks assigned to individual scores on two variables. A
correlation estimates the degree of association of two sets of variables in at least
an ordinal scale (first, second, third, and so on) so that the subjects under study
maybe ranked in a two-ordered series. This commonly used to measure the
disarray, D2 , where a coefficient of rank correlation has a value of + 1 when the
paired ranks are in similar order and a value of -1 when ranks are in the reverse
order.
  To obtain the value of spearman rho ()
consider this formula.
  

where:
= Spearman rho
= Sum of the squared differences between ranks
N = Number of cases
 To apply the above formula (7.2), the steps
are as follows:
  1. Rank the values from highest to lowest in the first set of
Step


variable (X) and mark them . The highest value is given

the rank of 1, the second, 2 and so on.
Step 2. Rank the second set of values (Y) in the same manner as in
Step 1 and mark them .
Step 3. Determine the differences in ranks for every pair of ranks.
Step 4. Square each difference to get
Step 5. Sum the squared difference to find
Step 6. Compute Spearman rho () by applying formula (7.2)
 Table 7.5
Computation of Spearman rho Between Capital (X)
And Profit (Y) of Dried Fish
Businessman X Y D
1 P 20,00 P 5,000 6 7 -1 1
2 50,000 15,000 3 3.5 .5 .25
3 10,000 3,000 9 9.5 .5 .25
4 100,000 30,000 2 2 0 0
5 18,000 4,000 7 8 1 1
6 25,000 9,000 5 5 0 0
7 11,000 6,000 8 6 2 4
8 150,000 70,000 1 1 0 0
9 5,000 3,000 10 9.5 .5 .25
10 40,000 15,000 4 3.5 .5 .25
Total 7.0
  

=1-
=1-
=1-
= 1 - .042
 = .95