Question
Write the merits and limitations of Spearman's rank correlation method.
✓
Answer
- Merits :
- This method is easy to understand and calculate.
- It is the only method when the data is qualitative.
- When dispersion is more or when the extreme observations are present in the data, then this method is preferred.
- When data is in numerical form then also ranks can be assigned according to their magnitude and we can find correlation coefficient.
- When only ranks are given for the two variables then this method is more efficient to use to calculate correlation coefficient.
- Limitation :
- Rank correlation method does not provide accurate value of the correlation coefficient as compared to Karl Pearson's method
- It is tedious to assign ranks when the number of observations is large
- This method cannot be used for bivariate frequency distribution.
- Since the ranks of observations are used instead of its original values, correlating coefficient obtained by this method is not reliable
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