using the rank correlation method determine the realtion between debenture price and share price

debenture price 97.8 99.2 98.8 98.3 98.4 96.7 97.1

share price 73.2 85.8 78.9 75.8 77.2 87.2 83.8

Debenture price

Share price

R1

R2

D=R1-R2

D²

97.8

73.2

3

1

2

4

99.2

85.8

7

6

1

1

98.8

78.9

6

4

2

4

98.3

75.8

4

2

2

4

98.4

77.2

5

3

2

4

96.7

87.2

1

7

-6

36

97.1

83.8

2

5

-3

9

N=7

 

 

 

 

D2=62



rk=1-6D2N3-N
=1-6X6273-7=-0.07
There is a negative coefficient of rank correlation to the tune of -0.07.It suggests that debenture price and share price are fairly opposite to each other.

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