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Key Differences between Pearson and Spearman Correlation Coefficient are -
| Aspect | Pearson Correlation Coefficient | Spearman Correlation Coefficient |
|---|---|---|
| Type of Relationship | Measures linear relationships between variables. | Measures monotonic relationships, where variables move consistently in one direction (not necessarily linearly). |
| Data Type | Works with continuous interval or ratio data. | Suitable for ordinal, ranked, interval, or ratio data. |
| Assumptions | Assumes linearity and normal distribution of data. | Does not require normality or linearity; works well with non-parametric data. |
| Sensitivity to Outliers | Sensitive to outliers, which can skew the correlation value. | Resistant to outliers since it uses ranks instead of raw data. |
| Calculation Method | Based on covariance and standard deviations of raw values. | Based on ranking the data points and calculating the difference in ranks. |
| Range of Coefficient | Ranges from -1 to 1 (negative, positive, or no linear correlation). | Ranges from -1 to 1 (negative, positive, or no monotonic correlation). |
| Ideal Use Cases | Use when the data follows a normal distribution and shows linear trends. | Use for non-linear or ranked data, or when dealing with outliers. |
| Fields of Application | Finance, healthcare, machine learning (e.g., stock price correlation). | Education, psychology, customer satisfaction surveys (e.g., rank-based analysis). |
| Example | Analyzing the relationship between height and weight of individuals. | Assessing the relationship between study hours and exam ranks of students. |
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