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Exercises · Q12

Q.Distinguish between Karl Pearson's coefficient of correlation and Spearman's rank correlation coefficient, and state one situation in which the rank method is preferable.

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Both coefficients measure linear association and both lie in [−1,+1][-1, +1], but they differ in input and in the situations they suit.

FeatureKarl Pearson's rrSpearman's RR
Input dataActual numerical measurementsRanks (orders) of the values
Formula∑dxdy∑dx2∑dy2\dfrac{\sum d_x d_y}{\sqrt{\sum d_x^2}\sqrt{\sum d_y^2}}1−6∑d2n(n2−1)1 - \dfrac{6\sum d^2}{n(n^2-1)}
SuitsPrecisely measured, roughly linear dataRanked or qualitative characteristics
Effect of outliersSensitive to extreme valuesRobust — ranks limit their effect

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