unit 3 Rank correlation coefficien

Rank correlation

Rank correlation is a method of finding the degree of association between two variables. The calculation for the rank correlation coefficient the same as that for the Pearson correlation coefficient, but is calculated using the ranks of observations and not their numerical values.

rank correlation coefficient, r_s, can take values from +1 to -1. A r_s of +1 indicates a perfect association of ranks, a r_s of zero indicates no association between ranks and a r_s of -1 indicates a perfect negative association of ranks. The closer r_s is to zero, the weaker the association between the ranks.

Formula

$\rho$	=	Spearman's rank correlation coefficient
$d_{i}$	=	difference between the two ranks of each observation
		N =number of observations Example Thank you...... By Yashwanth balaji. A. S 23UCM040 B.Com 1 10/2/2024