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CA Foundation · Quantitative Aptitude · Correlation and Regression

For 10 pairs of ranks with no ties, Spearman's rank correlation coefficient is 0.4. What is the value of Σd²?

Σd² is 99. From R = 1 - 6Σd²/[n(n²-1)], 0.4 = 1 - 6Σd²/990, so 6Σd²/990 = 0.6, giving 6Σd² = 594 and Σd² = 99.

  1. A99Correct
  2. B66
  3. C396
  4. D594

Explanation

0.4 = 1 - 6Σd²/(10 × 99), so 6Σd²/990 = 0.6. Hence 6Σd² = 594 and Σd² = 99. The value 594 is 6Σd², which is not Σd² itself, while 396 uses 0.4 × 990 and forgets the 1 - R step.

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