EXERCISE NO:4(c)

Find out the correlation between Claim and Surplus

Claim

Surplus
277
100
126
259
40
25
57
31
141

1425
273
915
1687
234
142
259
258
894
AIM

To find out the correlation between the two variables using various options available in excel.
ALGORITHM
STEP 1: Click Start

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MS Office

MS Excel

STEP 2: Save the document using File save and name the document.
STEP 3: Enter the data into rows and Columns
STEP 4: Calculate the correlation value for given data by using the formula =CORREL
(A2:A10, B2:B10)
STEP 5: Calculate the correlation value for given data by using the Pearson method as
=PEARSON (A2:A10, B2:B10)
STEP 6: Calculate the correlation value for the given data by using Data analysis method.

Click Data Choose Data analysis

Correlation
where you want to display the ouput click OK.
STEP 7: Save the output and exit excel.

Select input variable

select output rang

OUTPUT:

INTERPRETATION
The correlation values lie between +1 and -1. In this exercise the value of correlation
between the two variables studied is 0.959. Hence we conclude that there is a high positive
correlation between the two variables.

EXERCISE NO: 4(d)

To find the correlation between two variables (advertisement and revenue).
Advertisement
1.2
1.3
1.5
2.2
2.7
2.8
1.9
3.2
2.6
4.9
2.3

Revenue(000)
139
146
175
200
230
240
195
289
225
330
210

AIM
To find out the correlation between the two variables using different options available in excel.
ALGORITHM
STEP 1: Click Start

All Programs

MS Office

MS Excel

STEP 2: Save the document using File save and name the document.
STEP 3: Enter the data into rows and Columns
STEP 4: Calculate the correlation value for given data by using the formula
=CORREL(A2:A12,B2:B12).
STEP 5: Calculate the correlation value for given data by using the Pearson method as
=PEARSON(A2:A12,B2:B12).
STEP 6: Calculate the correlation value for the given data by using Data analysis method. Click

Data
Choose Data analysis
Correlation
Select input variable select output range

where you want to display the ouput click OK.

STEP 7: Save the output and exit excel.

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