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Correlation

Question

Wired Faculty App

Five students have been assiemed ranks on the basis of their ability.

Students

A

B

C

D

E

Ranks in Maths

1

2

3

4

5

Rank in Economics

4

2

¹

3

5

Calculate rank correlation coefficient.

Solution

Students	Rank in Maths R₁	Rank in Economicsn R₂	D (R₂-R₂)	D²
A	1	4	–3	9
B	2	2	0	0
C	3	1	2	1
D	4	3	1	4
E	5	5	0	0
N = 5				ΣD²=14

Some More Questions From Correlation Chapter

If precisely measured data are available the simple correlation coefficient is:

Why is r preferrred to co-variance as a measure of association?

Can r lie outside -1 and 1 range depending on the type of data?

Does correlation imply causation?

When is rank correlation more precise than simple correlation coefficient?

Does zero correlation mean independenc?

Can simple correlation coefficient measure any type of relationship?

Collect the price of five vegetables from your local market everyday for a week. Calculate their correlation coefficient. Interpret the result.

List some variables where accurate measurement is difficult.

Interpret the values of r as 1, –1 and 0.

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