Kendall defined
It is well known that the number of pairs of Nobjects is given by N(N 2 1) 2.
For our data
Thus, as a measure of the agreement between rankings on Alcohol and Tobacco, Kendall’s
t5.345.
The interpretation of is more straightforward than would be the interpretation of
calculated on the same data (0.37). If t5.345, we can state that if a pair of objects is sam-
pled at random, the probability that the two regions will be ranked in the same order is .345
higher than the probability that they will be ranked in the reverse order.
When there are tied rankings, the calculation of must be modified. For the appropri-
ate correction for ties, see Hays (1981, p. 602 ff).
Significance oft
Unlike Spearman’s rs, there is an accepted method for estimation of the standard error of
Kendall’s t.
Moreover, tis approximately normally distributed for N$10. This allows us to approxi-
mate the sampling distribution of Kendall’s tusing the normal approximation.
For a two-tailed test p 5 .139, which is not statistically significant.
With a standard error of 0.2335, the confidence limits on Kendall’s t, assuming nor-
mality of t,would be
For our example this would produce confidence limits of 2 .11 #t#.80.
Kendall’s thas generally been given preference of Spearman’s rSbecause it is a better
estimate of the corresponding population parameter, and its standard error is known.
Although there is evidence that Kendall’s holds up better than Pearson’s rto nonnor-
mality in the data, that seems to be true only at quite extreme levels. In general, Pearson’s r
on the raw data has been, and remains, the coefficient of choice. (For this data set the Pearson
correlation between the original cost values is r 5 .22, p 5 .509.)
10.4 Analysis of Contingency Tables with Ordered Variables
In Chapter 6 on chi-square, I referred to the problem that arises when the independent vari-
ables are ordinal variables. The traditional chi-square analysis does not take this ordering
into account, but it is important for a proper analysis. As I said in Chapter 6, this section
t
CI=t 6 1.96st=t 6 1.96 ¢
B
2(2N 1 5)
9 N(N 2 1)
≤=t 6 1.96(.2335)
z=
t
st =
t
B
2(2N 1 5)
9 N(N 2 1)
=
.345
B
2(27)
9(11)(10)
=
.345
.2335
=1.48
st=
B
2(2N 1 5)
9 N(N 2 1)
t
t rs
t= 12
2(Number of inversions)
Number of pairs of objects
= 12
2(18)
55
=.345
>
t= 12
2(Number of inversions)
Number of pairs of objects
or
2 S
N(N 2 1)
306 Chapter 10 Alternative Correlational Techniques