Karl Pearson's Method is superior to Rank Correlation. Do you agree? Justify your answer.
Answers
Answer:
yes , i agree this point. because Karl Pearson's Method is superior to Rank Correlation..
In Statistics or Economics,correlation method is used to measure or evaluate the mathematical or numerical association or between usually two variables.It signifies the strength and direction of the relationship or association between the variables.
Explanation:
Pearson's correlation is commonly applied while examining the linear relationship or association between two variables.Linear relationship between two variables implies that when one variable changes in certain proportion,the other variable also changes by the same proportion.Therefore,Pearson's correlation method is applicable in a special circumstance when the variables are linear in characteristic and relationship.
The Spearman's correlation method or rank correlation is applied to measure the monotonic relationship between two ordinal variables.Hence,here the variables are not linear as is the case with Pearson's correlation.Under monotonic relationship,the rate of change in both variables does not have to be constant.It basically assigns rank orders or values to the variables based on the respective correlation coefficient values.
Hence,both Pearson and rank correlations have different implications or applicability.However,the Pearson method is limited to only one particular case,that is,only when the variables are linear in relationship and characteristics.In this regard,rank correlation method has a broader applicability or practicality as it can be applied to broader perspectives and certainly goes beyond the case of linear correlation.Nevertheless,both are important in their own domain and represents different statistical criteria and circumstance.