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    Spearman Rank Correlation: Group 3

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    Hamzah
    1. Convert the values to ranks and find the differences between ranks 2. Calculate the sum of squared differences which gives the test statistic 3. Compare the test statistic to the critical value and reject the null hypothesis of no correlation at the 5% level 4. Calculate Spearman's rho which is 0.71, indicating a strong positive correlation between the variables.

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    Spearman Rank Correlation: Group 3

    Uploaded by

    Hamzah
    43 views21 pages
    1. Convert the values to ranks and find the differences between ranks 2. Calculate the sum of squared differences which gives the test statistic 3. Compare the test statistic to the critical value and reject the null hypothesis of no correlation at the 5% level 4. Calculate Spearman's rho which is 0.71, indicating a strong positive correlation between the variables.

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    for research metholodgy

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    spearmen_rank

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    1. Convert the values to ranks and find the differences between ranks 2. Calculate the sum of squared differences which gives the test statistic 3. Compare the test statistic to the critical value and reject the null hypothesis of no correlation at the 5% level 4. Calculate Spearman's rho which is 0.71, indicating a strong positive correlation between the variables.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    43 views21 pages

    Spearman Rank Correlation: Group 3

    Uploaded by

    Hamzah
    1. Convert the values to ranks and find the differences between ranks 2. Calculate the sum of squared differences which gives the test statistic 3. Compare the test statistic to the critical value and reject the null hypothesis of no correlation at the 5% level 4. Calculate Spearman's rho which is 0.71, indicating a strong positive correlation between the variables.

    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    of 21

    Spearman 

    Rank Correlation

    A measure of Rank Correlation

    Group 3
    The Spearman Correlation
    • Spearman’s correlation is designed to measure
    the relationship between variables measured on
    an ordinal scale of measurement.

    • Similar to Pearson’s Correlation, however it


    uses ranks as opposed to actual values.
    Assumptions
    • The data is a bivariate random variable.

    • The measurement scale is at least ordinal.

    • Xi ,Yi is independent of Xj ,Yj where i ≠ j


    Advantages
    1. Less sensitive to bias due to the effect of
    outliers
    - Can be used to reduce the weight of outliers (large distances get
    treated as a one-rank difference)

    4. Does not require assumption of normality.

    6. When the intervals between data points are


    problematic, it is advisable to study the
    rankings rather than the actual values.
    Disadvantages
    1. Calculations may become tedious. Additionally
    ties are important and must be factored into
    computation.
    Steps in Calculating Spearman’s Rho
    1. Convert the observed values to ranks
    (accounting for ties)
    2. Find the difference between the ranks, square
    them and sum the squared differences.
    3. Set up hypothesis, carry out test and conclude
    based on findings.
    Steps in Calculating Spearman’s Rho
    1. If the null is rejected then calculate the
    Spearman correlation coefficient to measure
    the strength of the relationship between the
    variables.
    Hypothesis: I
    A. (Two-Tailed)
    Ho : There is no correlation between the Xs and the Ys.
    (there is mutual independence between the Xs and the Ys)

    H1 : There is a correlation between the Xs and the Ys.


    (there is mutual dependence between the Xs and the Ys)
    Hypothesis: II
    B. (One-Tailed - Lower)
    Ho : There is no correlation between the Xs and the Ys.
    (there is mutual independence between the Xs and the Ys)

    H1 : There is a negative correlation between the Xs and


    the Ys.
    Hypothesis: III
    C. (One-Tailed - Upper)
    Ho : There is no correlation between the Xs and the Ys.
    (there is mutual independence between the Xs and the Ys)

    H1 : There is a positive correlation between the Xs and


    the Ys.
    Test Statistic
    For small samples (N < 40):
    T=Σdi2 = Σ[R(Xi) - R(Yi)]2
    For large samples:

    1 3
    T − ( n − n)
    Z =
    * 16
    1 2
    n (n + 1) (n − 1)
    2

    36
    (Reject using the appropriate Z critical value)
    Test Statistic
    • In the case of a large sample:

    1 3 1 2 
    T ~ N  (n − n); n (n + 1) (n − 1)
    2

    16 36 
    Decision Rules
    A. Two-tailed:
    Reject H0 if T≤ Sα/2 or T > S1- α/2 .
    Do not reject otherwise.

    B. One-tailed - Lower:
    Reject H0 if T > S1- α .
    Do not reject otherwise.

    C. One-tailed- Upper:
    Reject H0 if T≤ Sα.
    Do not reject otherwise.
    Spearman’s Rho
    In the case of few ties (less than 5% of the sample):

    n
    6∑d i
    2

    ρ =1 − i =1
    N ( N −1) 2
    Where di is the difference in the ranks of each pair
    and N is the number of pairs
    Spearman’s Rho
    If there are numerous ties:
    2
    n
     n +1
    ∑ R( xi ) R( yi ) − n
     2 

    ρ= i =1
    0.5 0.5
    n  n + 1 
    2
      n
     n +1 
    2

    ∑ R( xi ) − n   ∑ R( yi ) − n
    2 2
     
     i =1  2    i =1  2  
    Spearman’s Rho
    Assumes values between -1 and +1

    -1 ≤ ρ ≤ 0 ≤ ρ ≤ +1

    Perfectly Negative Perfectly Positive


    Correlation Correlation
    Example 1
    The ICC rankings for One Day International (ODI) and
    Test matches for nine teams are shown below.
    Team Test Rank ODI Rank
    Australia 1 1
    India 2 3
    South Africa 3 2
    Sri Lanka 4 7
    England 5 6
    Pakistan 6 4
    New Zealand 7 5
    West Indies 8 8
    Bangladesh 9 9
    Test whether there is correlation between the ranks
    Example 1
    Team Test Rank ODI Rank d d2
    Australia 1 1 0 0
    India 2 3 1 1
    South Africa 3 2 1 1
    Sri Lanka 4 7 3 9
    England 5 6 1 1
    Pakistan 6 4 2 4
    New Zealand 7 5 2 4
    West Indies 8 8 0 0
    Bangladesh 9 9 0 0
    Total 20

    Answer:
    T = ∑ d i = 20
    2
    ρ = 0.8333.
    Example 2
    A composite rating is given by executives to
    each college graduate joining a plastic
    manufacturing firm. The executive ratings
    represent the future potential of the college
    graduate. The graduates then enter an in-plant
    training programme and are given another
    composite rating. The executive ratings and the
    in-plant ratings are as follows:
    Graduate Executive rating (X) Training rating (Y)
    A 8 4
    B 10 4
    C 9 4
    D 4 3
    E 12 6
    F 11 9
    G 11 9
    H 7 6
    I 8 6
    J 13 9
    K 10 5
    L 12 9

    • At the 5% level of significance, determine if there is a


    positive correlation between the variables
    • Find the rank correlation coefficient if the null is rejected

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