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What are various steps for the calculation of rank order correlation?

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Question

What are various steps for the calculation of rank order correlation?

Answer in Brief
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Solution

Step 1: Rank both sets of data. Give the largest value rank 1, the second largest value rank 2, etc.
Step 2: Calculate the differences in the ranks, d.
Step 3: Work out the squares of the differences (d2).
Step 4: Calculate the sum of these squared differences, ∑d2
Step 5: Spearman’s Rank Correlation Coefficient is found by substituting this sum into the following formula.

`1 - (6 xx sumfx^2)/("n"("n"^2 - 1))`

where n is how many pairs of data you have.
Example: Find rank correlation from data given below:

Team Goals in 1992 Goals in 1993
1 125 109
2 80 76
3 96 101
4 65 77
5 30 27
6 134 142
7 54 76
8 16 12
9 64 80
10 72 93
11 49

82

 

 

Team Goals In 1992 Goals In 1993 R, R2 R1-R2 (R, R2²
1 125 109 2 2 0 0
2 80 76 4 8.5 -4.5 20.25
3 96 101 3 3 0 0
4 65 77 6 7 -1 1
5 30 27 10 10 0 0
6 134 142 1 1 0 0
7 54 76 8 8.5 -0.5 0.25
8 16 12 11 11 0 0
9 64 80 7 6 1 1
10 72 93 5 4 1 1
11 49 82 9 5 4 16
            39.5

So, for this set of data, the finished equation looks like this:

rank = `1 - (6sum"d"^2)/("n"("n"^2 - 1))`

`1 - (6 xx 39.5)/(11 xx (11^2 - 1))`

`1 - (237)/(1320)= -0.17954`

= 0.82046

High Positive Correlation.

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