Question 3 OR (d)

Spearman's rank correlation of consultants' productivity and client satisfaction, with tied ranks

9 marks

Time to write
About 18 minutes
Topic
Correlation

Question

Question 3 OR (d) · 9 marks

Crest Consulting, a management consulting firm, is studying how consultant productivity scores relate to client satisfaction ratings within its project teams. The firm supplies the productivity scores and client-satisfaction ratings of 10 consultants as below:

ConsultantProductivity ScoresClient Satisfaction Scores
A5754
B6062
C5249
D5956
E5558
F5060
G5052
H4447
I4854
J5458

Using Spearman's Rank Correlation Coefficient, you are to determine that;

  1. Is there any correlation between the productivity scores and the client satisfaction scores of the consultants? Also interpret the result.

  2. What will be the impact on the rank correlation coefficient if the productivity score of consultant "I" is changed from 48 to 49?

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

18 minfor 9 marks

Read from the question

  • Is…?Interpret…What…?3 questions in all: answer every one.

What the paper leaves open

As printed, "determine that;" introduces two questions; it is read as "determine:".

Write it in this order

  1. Read; underline the asks; jot your points 1 min
  2. 1 Ranking, including tied ranks 2½ marks 4 min
  3. 2 ΣD² and the tie correction 2 marks 4 min
  4. 3 Rank correlation coefficient 1½ marks 3 min
  5. 4 Interpretation 1 mark 2 min
  6. 5 Effect of changing I's score from 48 to 49 2 marks 3 min
  7. Check: every ask answered, key terms underlined 1 min

Short on time? Trim steps 1, 2, 3 and 5 evenly rather than skip one: each is capped at its own marks.

Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

Ranking. Rank 1 is given to the highest score in each series. Equal scores share the average of the ranks they would occupy: in productivity, F and G (50) share ranks 7 and 8, so each gets 7.5; in client satisfaction, E and J (58) share ranks 3 and 4 (3.5 each), and A and I (54) share ranks 6 and 7 (6.5 each). For ties, Spearman's formula adds (m³ − m) / 12 to ΣD² for every group of m equal values in either series:

ρ = 1 − 6[ΣD² + Σ(m³ − m)/12] / [n(n² − 1)], D being the difference between the two ranks of a consultant.

Working table

ConsultantProductivitySatisfactionRank R₁Rank R₂D = R₁ − R₂D²
A575436.5−3.512.25
B60621100
C524969−39
D595625−39
E555843.50.50.25
F50607.525.530.25
G50527.58−0.50.25
H4447101000
I485496.52.56.25
J545853.51.52.25
Total069.5

(i) Rank correlation coefficient

Three groups of two tied values (one in productivity, two in satisfaction), each with m = 2: correction = 3 × (2³ − 2)/12 = 3 × 0.5 = 1.5.

ρ = 1 − 6(69.5 + 1.5) / [10(10² − 1)] = 1 − 426 / 990 = 1 − 0.4303 = 0.5697.

Interpretation. Yes, there is correlation: it is positive and moderate (about 0.57). Consultants with higher productivity scores tend, on the whole, to earn higher client-satisfaction scores, but the agreement between the two rankings is far from perfect (F, for example, is seventh in productivity yet second in satisfaction). As a rough check of reliability, the probable error is 0.6745 (1 − ρ²) / √n = 0.6745 × (1 − 0.3246) / √10 = 0.1441; ρ is well above the probable error but below 6 × P.E. = 0.8644, so with only ten consultants the result suggests a real link without proving it. The firm may treat productivity as one factor in client satisfaction, while correlation alone does not show which one drives the other.

(ii) Productivity score of I changed from 48 to 49

Rank correlation depends only on the order of the values, not on their size. The new score 49 still lies below 50 (F and G) and above 44 (H), so I remains ninth in productivity. No rank changes, every D and D² stays the same, the tie correction is unchanged, and so the coefficient is unchanged at 0.5697. (The ranks would change only if the new score moved I past a neighbouring value, for example to 50 or more.)

Where the 9 marks sit

#ComponentMarks
1Ranking, including tied ranks2.5
2ΣD² and the tie correction2
3Rank correlation coefficient1.5
4Interpretation1
5Effect of changing I's score from 48 to 492
Total9
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