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Determine Rank Correlation Coefficient
A group of 8 accountancy students are tested in Quantitative Techniques and Law II. Their rankings in the two tests were as:
Student
Q.T. ranking
Law II ranking
d
d2
A
2
3
-1
1
B
7
6
C
4
D
E
5
F
G
8
-3
9
H
Σd2 = 22
d = Q. T. ranking - Law II ranking
R = 1 - {(6Σd2)/(n(n2 -1))}
1 -{(6(22))/(8(82 -1))} = 0.74
Hence we conclude that there is a reasonable agreement among student's performances in the two types of tests.
NOTE: in this illustration, if we are given the actual marks then we find r. R varies between -1 and +1.
Difference between absolute and relative in the definition Now, let's talk a little bit regarding the subtle difference among the absolute & relative in the definition above.
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