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Question -

Of the following three measures which can measure any type of relationship

(i) Karl Pearson’s coefficient of correlation

(ii) Spearman’s rank correlation

(iii) Scatter diagram



Answer -

Scatter diagram can measure any type of relationship whether the variables are highly related or not at all related. Just by looking at the diagram, the viewer can easily conclude the relationship between the two variables involved. On the other hand, Karl Pearson’s coefficient of correlation is not suitable for the series where deviations are calculated from assumed mean. Likewise, Spearman’s rank correlation also disqualifies to measure any kind of relationship as its domain is restricted only to the qualitative variables (leaving quantitative variables). 

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