From the course: Learning Excel: Data Analysis

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Calculate covariance between two columns of data

Calculate covariance between two columns of data - Microsoft Excel Tutorial

From the course: Learning Excel: Data Analysis

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Calculate covariance between two columns of data

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- [Instructor] When you analyze data, it's often important to see how two sets of value vary in relation to one another. For example, if people drive to get to your store, you might be interested in knowing if the distance they drive is related to how much they spend. In this movie, I will show you how to look at the relationship between two sets of values by calculating covariance. My sample file is 05_02_SingleCovariance and you can find it in the chapter five folder of the exercise files collection. I'll show you two different ways to calculate covariance. The first is the long way. So I will implement the formula that you see here in this graphic as part of the worksheet. And then once you understand what's going on, I will show you how to use a built-in function to perform the same calculation. Rather than give an overview, I will go ahead and start implementing the formula that you see on the right in cell C2. So this will be for our first pair of values. So in C2, I will type…

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