Determine rank correlation coefficient, Mathematics

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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	1	1
C	6	4	2	4
D	1	2	-1	1
E	4	5	-1	1
F	3	1	2	4
G	5	8	-3	9
H	8	7	1	1

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.

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