Class 1
Class 1
Class 1
E-Class on 13/03/2020
Topics discussed:
By Ms.Komal Chhikara
Bcom Sem II
Section A
Karl Pearson’s Correlation Coefficient
Karl Pearson’s coefficient of correlation (r) is one of the mathematical methods of
measuring the degree of correlation between any two variables X and Y is given as:
we can say that there is a high degree of positive correlation between the training and
sales performance of the salesmen.
Like Karl Pearson's coefficient of correlation the Spearman's rank correlation
has a value + 1 for perfect matching of ranks, -1 for perfect mismatching of ranks
and 0 for the lack of relation between the ranks.
Sometimes there is a tie between two or more ranks in the first and/or second
series. For example, if the values of two items are same and presume that the
rank of one item may be 4th rank, then instead of awarding 4th rank to the
respective two observations, we award 4.5 [(4+5)/2] for each of the two
observations.
Now we will take up an illustration to understand how to award the ranks when
the data is given in values and to calculate the rank, correlation. The illustration
will also give clarity how to award the ranks when values of items in series are
same.
Question: Calculate rank correlation from the following data related to a group of
10 students and percentage of marks secured.
The above data was given in percentage of marks not in the ranks. Therefore, for
calculation of rank correlation, first, we have to assign the ranks to the given
values. As we discussed earlier the ranks may be assigned either from the largest
value to smallest value or visa-versa. Here, we assign the ranks from largest to
smallest value which is normally in practice.
Explanation of assigning ranks:
For the values of percentage of marks in statistics for 80, 75, 66, 60 there are only
single values. Therefore, ranks have been assigned 1,2,3,4. Whereas the next value
55 repeated two times in the data, therefore, 5 + 6 ranks divided by 2 = 5.5 rank
has been allotted to the value of 55 two times.
Similarly, the value of 45 repeated three times in the data, therefore the ranks
8+9+10 divided by 3 equal to 9. Accordingly, the rank 9 has been allotted to value
of 45 (in between) value of 55, 45. There is a value of 50, hence rank seven has
been allotted to 50. In the same manner, you may try to observe the assigning of
ranks to the values of percentage of marks in accountancy.
Question for practice:
Using rank correlation method, discuss which pair of judges has the nearest
approach to common liking in music.
Thank You