In order to know the relation in between x, y, z, we have worked out Spearman’s Correlation coefficient (Rank
correlation coefficient) pair wise.
Rxy= 0.975, Rxz = 0.7, Ryz = 0.883
Rxy = The correlation coefficient between the brand image and the past performance (0.975) is maximum; it shows a
very high degree of positive correlation in between the said variables.
Then the significance of the coefficient of rank correlation was tested by using small sample (‘t’) test.
H0: Two variables are not associated, i.e., r = 0
H1: Variables are associated
Test statistic
t = r {(n-2) / 1-r2} = 0.975 {(5-2) / 1-0.9752
} = 7.59
Calculated value of ‘t’ is 0.125 and the tabulated value of ‘t’ with (n-2 =3) d. f. is 2.353
As Cal. value < Tab. Value, H0 is rejected and H1 is accepted.
Therefore it can be said that the variables, past performance and Brand image, are closely associated in case of Mutual
funds.