DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name : B. VIJAYA KUMAR

Designation : Lecturer
Branch : Commercial & Computer Practice (CCP)
Institute : GPW/Guntur
Year/Sem : II Yr Sem 4
Subject : QUANTITATIVE TECHNIQUES-II
Sub-Code : CCP-403
Topic : CORRELATION ANALYSIS
Duration : 50 minutes
Sub Topic : Spearman’s RANK CORRELATION-VI
(When RANKS are NOT given) & Misc. Problems
Teaching Aids : PPT ANIMATION

CCP403.17 1
Objectives

On completion of this topic, you would be

able to :
 Calculate Spearman’s Rank Correlation

 When ranks are equal

CCP403.17 2
Recap

In the previous class, you learnt

 Calculating Spearman’s Rank Correlation
when ranks are not given

CCP403.17 3
In this class, let us see how to calculate

 Rank Correlation

 When ranks are equal

CCP403.17 4
Equal ranks

 In some cases, two or more values in the

series get EQUAL RANKS

 Then, for both the values (which got equal

ranks), the average rank be given

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Equal ranks

 If 2 individuals get equal ranks at 5th place, they

should be given average rank

 Eg: Rank = 5 + 6 = 5.5

2

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 Equal ranks

 If 3 individuals get equal ranks at 5th place, they

should be given average rank

 Eg: Rank = 5 + 6 + 7 = 6
3

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 Equal ranks – Explanation

 If 2 or more items get equal ranks, the rank

given for calculating COC is average of ranks
which the items would have got, if they differed
slightly from each other

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 Equal ranks

Formula: R = 1 – (6 ∑D2 + 1/12 (m3-m) + 1/12 (m3-m) +

. .)
N3-N

Where R = COC
m = No. of items with common ranks
D = Rank Differences
N = No. of Pairs

CCP403.17 9
Example 1 - Equal ranks

Calculate Rank COC for the data below:

X 80 78 75 75 68 67 60 59

Y 12 13 14 14 14 16 15 17

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Solution to Ex. 1

Step 1:

 First give RANKS to the values in “X” and

“Y” series

 Then calculate COC

CCP403.17 11
Solution Contd

Calculation of Rank Correlation Coefficient

X Rx Y Ry D2 = (Rx-Ry)2
80 8 12 1 49.00
78 7 13 2 25.00
75 5.5 14 4 2.25
75 5.5 14 4 2.25
68 4 14 4 0
67 3 16 7 16.00
60 2 15 6 16.00
59 1 17 8 49.00
∑D2= 159.5

CCP403.17 12
Solution contd

R = 1 – 6 ∑D2 + 1/12 (m3- m) + 1/12 (m3- m) + . .

N3- N

= 1 – 6 159.5+ 1/12 (23-2) + 1/12 (33-3)

83- 8
= 1 – 6 159.5 + 0.5 + 2
504

= 1 – 972 = 1 – 1.929 = - 0.929

504

Therefore, Spearman’s Rank COC = - 0.929

CCP403.17 13
Example 2

From the following data calculate the coefficient of rank

correlation between X and Y

X 20 25 60 45 80 25 55 65 25 75

Y 45 50 55 50 60 70 72 78 80 63

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Solution to Ex. 2
Calculation of correlation coefficient by ranking method

X R1 Y R2 D = (R1-R2) D2

20 1 45 1 0 0.00
25 3 50 2.5 0.5 0.25
60 7 55 4 3 9.00
45 5 50 2.5 2.5 6.25
80 10 60 5 5 25.00
25 3 70 7 -4 16.00
55 6 72 8 -2 4.00
65 8 78 9 -1 1.00
25 3 80 10 -7 49.00
75 9 63 6 3 9.00
ΣD2 = 119.5

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Solution contd

 In X series three are ranked equal at 2nd place, so

the average rank 2  3  4  3
3

 In Y series two are ranked equal at 2nd place, so

the average rank 2  3  2.5
2

 The item 25 is repeated 3 times in X series, so m=3

 The item 50 is repeated 3 times in X series, so m=2

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Solution contd..

 1 1 
6  D 2 +  m3 -m  +  m3 -m  
R=1-  
12 12
N 3 -N
 1 1 
6  119.5+  33 -3 +  23 -2  
=1-  
12 12
103 -10
6  119.5+2+0.5
=1-
990
6*122
=1-
990
732
=1-
990
=0.26
CCP403.17 17
Example 3

Coefficient of correlation between two varieties X

and Y is 0.3. Their covariance is 9. Variance of X
is 16. Find Standard Deviation of Y series.

Solution to Ex. 3
Co-variance = ∑XY, where x and y are the deviations
N
of the values of X and Y series from their respective
means

CCP403.17 18
Solution contd

Variance of X series is 16, i.e.,

σ x = √16 = 4

r= ∑XY
N σxσy

= ∑xy X 1
N σxσy

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 Solution contd

Substituting the given values in formula

0.3 = 9 X 1
4σy

1.2 σy = 9

σy = 9 = 7.5
12

Therefore, Standard Deviation of Y series = 7.5

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Example 4

Coefficient of correlation between two varieties X

and Y is 0.64. Their covariance is 16. Variance of
X is 9. Find Standard Deviation of Y series.

Solution to Ex. 4
Co-variance = ∑XY, where x and y are the deviations
N
of the values of X and Y series from their respective
means

CCP403.17 21
Solution contd

Covariance = ∑xy / N

x   9  3
r   xy / N xy
 ( xy / N ) X (1/ xy )
 xy / N  16, x  3, r  0.64

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 Solution contd

Substituting the given values in formula

0.64 = 16 / 3σy

1.92 σy = 16

σy = 16 = 8.33
1.92

Therefore, Standard Deviation of Y series = 8.333

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Summary

 When two or more values in the series get EQUAL

RANKS, the should be given AVERAGE VALUE for
calculating Rank Correlation Co-efficient.

 Accordingly, there will be a slight change in the

formula also.

CCP403.17 24
Quiz

• In the Rank Correlation (equal ranks) formula,

“M” stands for:
(a) Deviations
(b) No. of items with common ranks
(c) Rank Differences
(d) None of the above

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Frequently Asked Questions

1. Calculate the rank coefficient of correlation

of the following data:

X 100 120 135 135 115 110 120

Y 50 40 60 80 80 55 65

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Assignment

1) Calculate Rank Correlation for the following data:

P 7 1 4 6 5 3 2

Q 5 1 2 3.5 3.5 7 6

Ans: R = + 0.125

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ASSIGNMENT
2) For more problems on Spearman’s RANK
Correlation, please refer to:
a) “Statistics – Problems and Solutions” by V.K.Kapoor
b) “Fundamentals of Statistics” by S.C.Gupta
c) “Statistical Methods” by S.P.Gupta
d) “Quantitative Techniques” by S.L.Agarwal &
Bharadwaj
e) Any other text book suggested by your teacher
f) Previous years’ exam question papers of SBTET
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