Question

While computing rank correlation coefficient between profit and investment for the last 6
years of a company the difference in rank for a year was taken 3 instead of 4. What is the
rectified rank correlation coefficient if it is known that the original value of rank correlation
coefficient was 0.4?
(a) 0.3
(b) 0.2
(c) 0.25
(d) 0.28​

Answer 1

Answer:

rectified rank correlation coefficient = 0.2

Step-by-step explanation:

rank correlation coefficient    = 1   - 6  ∑ (di)² / (n(n² - 1))

n = number of years = 6

0.4 = 1 - 6  ∑ (di)²/ (6(6² - 1)

=> 0.6 = ∑ (di)²/35

=>  ∑ (di)² = 21

rank for a year was taken 3 instead of 4.

=> Actual  ∑ (di)²  = 21 - (3)² + 4²  = 28

Actual  rank correlation coefficient   = 1   - 6  * 28 / (n(n² - 1))

= 1  - 28/35

= 7/35

= 1/5

= 0.2

rectified rank correlation coefficient = 0.2

Answer 2

Answer:

0.2 correct answer 6×28/(36-1)=7/35 =1/5=0.2