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Learn about correlation, and how to use the CORREL function.
Example Excel Spreadsheet
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We could teach a whole
stage about correlation.
0:00
For sure, lot's of analysts out
there are constantly debating
0:02
how to think about
correlation versus causation.
0:06
For the sake of this course,
0:09
just know that correlation measures the
relationship between two or more things.
0:11
It is a measurement of the interdependence
of variable quantities.
0:16
These numbers are expressed
in a range between 1 and -1.
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So, if you calculate the correlation
of two variables, and
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the correlation is 1,
that is a perfect correlation.
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If it is around 0.5,
that's a fairly low correlation.
0:35
At 0 there's no correlation.
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-1 will be a perfect negative correlation.
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Let's calculate the correlation of
height and weight in our dataset.
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So here we are back in our spreadsheet
that has data on height and weight.
0:53
You can use a CORREL function to calculate
the correlation between height and weight.
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So, I'm going to hit =,
type in COR, there we go,
1:05
we got the CORREL function right there.
1:11
Parentheticals, array 1,
I'm gonna go over to B2.
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I'm gonna hold down Shift + Ctrl and
press the down arrow.
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Then I'm gonna do comma.
1:27
I press left arrow, now I'm in C2 I'm
gonna hold down Shift + Ctrl and
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press down again.
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And then I'm gonna close
the parentheticals, Return,
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And here we go, 0.85498989.
1:43
Well, that's closer to 1 than 0.5, so
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the correlation in our
dataset between height and
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weight is 0.85,
which is a positive correlation.
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It's not super strong or perfect,
but it's certainly not weak.
2:01
That makes sense for height and weight.
2:07
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