How does rank correlation differ from Pearson correlation coefficient?
Rank collection co-efficient and simple correlation coefficient have the same interpretation. Its formula has been derived from simple correlation coefficient where individual values have been replaced by rank. These ranks are used for the calculation of correlation. This coefficient provides a measure of linear association between ranks assigned to units not their values correlation. Following formula is used for calculating rank correlation
In Karl Pearson’s coefficient of correlation, the values of two series are not assigned rank. The correlation coefficient provides a measure of linear association to the values of the variables. Following formula i.e. used for calculating the correlation coefficient.
