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Calculating Correlation With Excel

This document discusses how to calculate correlation using Excel. It defines correlation analysis as a statistical technique used to analyze the strength and direction of the relationship between two quantitative variables. It explains that the correlation coefficient measures the strength and direction of this relationship between -1 and 1, and that the data relationship should be linear. It provides details on how to calculate the correlation coefficient using the CORREL function or correlation tool add-in, and defines the strength of correlation at different coefficient values.

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Aadhar Gilhotra
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Download as PPTX, PDF, TXT or read online on Scribd
90 views

Calculating Correlation With Excel

This document discusses how to calculate correlation using Excel. It defines correlation analysis as a statistical technique used to analyze the strength and direction of the relationship between two quantitative variables. It explains that the correlation coefficient measures the strength and direction of this relationship between -1 and 1, and that the data relationship should be linear. It provides details on how to calculate the correlation coefficient using the CORREL function or correlation tool add-in, and defines the strength of correlation at different coefficient values.

Uploaded by

Aadhar Gilhotra
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Calculating Correlation

with Excel
By:
Aadhar Gilhotra
Arshdeep Singh
Vinay Singh Gosain
Correlation Analysis

A statistical technique that is used to
analyse the strength (magnitude)
and direction of the relationsip
between two quantitative variables
is called correlation analysis.
Correlation coefficient
measures the strength
and direction of
relationship between 2
variables
Always a number
between -1 and1.
It assumes the
relationship between
the data is linear.
Calculating
Function: correl()
Correlation tool with
the data analysis Add-In
Strength of Correlation Coefficient
Strength Negative Positive
Weak -0.3 to -0.1 0.1 to 0.3
Medium -0.5 to -0.3 0.3 to 0.5
Strong -1 to -0.5 0.5 to 1
Remember
...to Plot your
data to make
sure that no
outliners exist
and that the
data is linear.

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