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6 ∑ 𝑑2
rs = 1 – 𝑛(𝑛2 −1)
Like the coefficient of correlation, the coefficient of rank correlation can assume any value from
–1 up to 1. A value of –1 indicates perfect negative correlation and a value of 1 perfect positive
correlation among the ranks. A rank correlation of 0 indicates that there is no strong association among
the ranks.
e.g.1 A composite rating is given by executives to each college graduate joining a plastics
manufacturing firm. The executive rating is an expression of the future potential of the college
graduate. The ratings represent, of course, the ordinal level of measurement. The recent college
graduate then enters an in-plant training program and is given another composite rating based on
tests, opinions of group leaders, training officers, and so on. The executive ratings and the in-
plant training ratings are given in the table below.
Graduate Executive rating Training rating
A 8 4
B 10 4
C 9 4
D 4 3
E 12 6
F 11 9
G 11 9
H 7 6
I 8 6
J 13 9
K 10 5
L 12 9
Calculate the coefficient of rank correlation. Interpret its value.
e.g.2 The University of Winston has five scholarships available for the women’s basketball
team. The coach provided two scouts with the names of 10 high school players with
potential. Each scout attended three games and then ranked the 10 players with respect to
potential. To explain, the first scout ranked Norma Tidwell as the best player among the
10 scouted and Jeannie Black the worst.
STA2204.chap9