From the course: Learning Excel: Data Analysis

Unlock the full course today

Join today to access over 23,100 courses taught by industry experts.

Visualize what correlation means

Visualize what correlation means - Microsoft Excel Tutorial

From the course: Learning Excel: Data Analysis

Start my 1-month free trial Buy for my team

Visualize what correlation means

“

- [Instructor] When you analyze business data, you will often want to know whether two sets of values are related. One way to do that is to calculate correlation. Previously, I showed you how to calculate core variance, and as a reminder, here is that formula. The idea is that you multiply the differences from the mean for each value pair. So we have two columns of data, and we have an X and Y value that are matched up. And you find the sum of that product. You then divide that total by the number of data pairs. Correlation is related, and here is the formula. So you'll see that the top term is the same, but it's divided by the term shown. And it takes a while to explain, so I will just ask you to accept the term as given and use it in your calculations. So the next question is how do you interpret your correlation values? You will get a value between one and negative one. Data that is completely uncorrelated returns a correlation value of zero. In other words, the two sets of values…

Contents