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Spearman’s Rank Correlation Coefficient
Formula, Worked Example
Author:
Syed Ali
Edu Level: Unit2
Date: Aug 13 2025 - 7:34 PM
⏱️Read Time: 1 min
Spearman’s Rank Correlation Coefficient
The Spearman’s Rank Correlation Coefficient is a statistical method used to measure the strength and direction of the relationship between two ranked variables. It is especially useful when the data is not normally distributed or when working with ordinal data.
| Country | GDP per Capita (USD) | Rank GDP | Energy Cost (cents/kWh) | Rank Energy | d | d² |
|---|---|---|---|---|---|---|
| FRANCE | 45,000 | 1 | 12 | 6 | -5 | 25 |
| ITALY | 40,000 | 2 | 10 | 4 | -2 | 4 |
| SPAIN | 35,000 | 3 | 8 | 2 | 1 | 1 |
| JAPAN | 30,000 | 4 | 9 | 3 | 1 | 1 |
| BARBADOS | 25,000 | 5 | 11 | 5 | 0 | 0 |
| TRINIDAD & TOBAGO | 20,000 | 6 | 13 | 7 | -1 | 1 |
| CHINA | 15,000 | 7 | 14 | 8 | -1 | 1 |
| BOTSWANA | 10,000 | 8 | 7 | 1 | 7 | 49 |
A correlation of 0.02 means there is virtually no relationship between GDP per capita and energy costs in this dataset high GDP countries do not necessarily have higher or lower energy costs.
