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Simpson’s Paradox for Kendall’s Rank Coefficient

Author

Listed:
  • Pierre Zuyderhoff

    (University of Nottingham)

  • Michel Denuit

    (UCLouvain)

  • Julien Trufin

    (Université Libre de Bruxelles (ULB))

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.

Suggested Citation

  • Pierre Zuyderhoff & Michel Denuit & Julien Trufin, 2025. "Simpson’s Paradox for Kendall’s Rank Coefficient," Methodology and Computing in Applied Probability, Springer, vol. 27(2), pages 1-14, June.
    • Handle: RePEc:spr:metcap:v:27:y:2025:i:2:d:10.1007_s11009-025-10161-x
    DOI: 10.1007/s11009-025-10161-x
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    References listed on IDEAS

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