Simpson’s Paradox for Kendall’s Rank Coefficient
(2025) Methodology and Computing in Applied Probability — Vol. 27, n° 2, p. 29 (2025)
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- Abstract
- This note revisits Simpson’s paradox and discusses confounding effects of hidden covariates on Kendall’s tau. As a result, observed correlation may vanish or even revert. More specifically, a decomposition of Kendall’s tau in the presence of subgroups is established, a formal definition of Simpson’s paradox for Kendall’s tau is given and some simple examples of paradoxical situations in the insurance domain are provided. Finally, necessary and sufficient conditions for a Simpson’s paradox to occur are studied.
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Citations
Zuyderhoff, P., Denuit, M., & Trufin, J. (2025). Simpson’s Paradox for Kendall’s Rank Coefficient. Methodology and Computing in Applied Probability, 27(2), 29. https://doi.org/10.1007/s11009-025-10161-x (Original work published 2025)