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.