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Question

Give three examples of perfect correlation. Find out rank difference coefficient of correlation with the help of the following data:
X 48 33 40 9 16 65 26 15 57
Y 13 13 22 6 14 20 9 6 15

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Solution

Three examples of perfect correlation are:
1. T.V. viewing and Study hours (-ve correlation). That is, as the hours spent in T.V. viewing increases, the numbers of hours that can be devoted to study decreases and vice-versa.
2. Income used for consumption and amount of saving (-ve correlation). That is, greater the portion of income used for consumption purposes, smaller is the portion of income left for saving purposes and vice-versa.
3. Amount deposited in bank and interest earned (+ve correlation). That is, as the amount deposited in the bank increases, the amount of interest that is earned increases and vice-versa.
X R1 Y R2 D = R1R2 D2
48
33
40
9
16
65
26
15
57
3
5
4
9
7
1
6
8
2
13
13
22
6
14
20
9
6
15
5.5
5.5
1
8.5
4
2
7
8.5
3
–2.5
–.5
3
.5
3
–1
–1
–.5
.1
6.25
.25
9
.25
9
1
1
.25
1
N = 9 D2= 28

rk=1-6D2+112M13-M1+112M23-M2N3-NHere,M1= 2, as the item 13 is appearing twice in Y-series.M2= 2, as the item 6 is appearing twice in Y-series.or, rk=1-628+112(23-2)+112(23-2)729-9, rk=720-147720=0.758

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