Spearmans rank correlation coefficient r s is defined as follows: r s = 1 6 d

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Spearman’s rank correlation coefficient rs is defined as follows:

rs = 1 – 6 Σd2 / n(n2 – 1)

Where d = difference in the ranks assigned to the same individual or phenomenon and n = number of individuals or phenomena ranked. Derive rs from r defined in Eq. (3.5.13). Rank the X and Y values from 1 to n. Note that the sum of X and Y ranks is n(n + 1)/2 each and therefore their means are (n + 1)/2.

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Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

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