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Business Mathematics and Basic Statistics · Ch 16 — Bivariate Statistics — Correlation and Regression

Spearman's Rank Correlation Coefficient

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Spearman's Rank Correlation Coefficient

Pearson's correlation coefficient needs actual numerical values of xx and yy to work with. Sometimes, though, the data available is only an order — two judges ranking the same contestants, or two examiners ranking the same essays — with no underlying numerical score at all, or the numerical scores are themselves converted to ranks because the ranking itself (not the raw score) is what is being compared. Spearman's rank correlation coefficient measures the strength of association between two such sets of ranks.

Note

Spearman's Rank Correlation Coefficient

For nn items ranked twice (once on each of two characteristics), let did_i be the difference between the two ranks given to the ii-th item. Then

rs=1−6∑di2n(n2−1)r_s = 1 - \dfrac{6\sum d_i^2}{n(n^2-1)}

Like Pearson's rr, Spearman's rsr_s always lies between −1-1 and +1+1, and is read the same way: rsr_s near +1+1 means the two rankings largely agree (an item ranked high on one criterion tends to be ranked high on the other too); rsr_s near −1-1 means the rankings are largely reversed; rsr_s near 00 means the two rankings show little relationship. If the two rankings are identical, every di=0d_i = 0 and rs=1r_s = 1 exactly.

⚠️ Scope note: the formula above is the standard version, used when no two items share the same rank on either characteristic (no tied ranks). This is the formulation this syllabus's own topic line specifies; a further correction term exists in the wider subject for the case of tied ranks, but is not part of this chapter's stated scope, so every worked example and exercise here uses data with distinct ranks throughout. …

Definition 1Spearman's Rank Correlation Coefficient

A measure of association between two rankings of the same nn items, rs=1−6∑d2/(n(n2−1))r_s = 1 - 6\sum d^2/(n(n^2-1)), where dd is the difference between an item's two ranks; used when data is ordinal (ranked) …