The CORREL Function2:10 with Michael Watson
Learn about correlation, and how to use the CORREL function.
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. 0:21 So, if you calculate the correlation of two variables, and 0:25 the correlation is 1, that is a perfect correlation. 0:30 If it is around 0.5, that's a fairly low correlation. 0:35 At 0 there's no correlation. 0:39 -1 will be a perfect negative correlation. 0:43 Let's calculate the correlation of height and weight in our dataset. 0:49 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. 0:58 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. 1:15 I'm gonna hold down Shift + Ctrl and press the down arrow. 1:21 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 1:30 press down again. 1:33 And then I'm gonna close the parentheticals, Return, 1:35 And here we go, 0.85498989. 1:43 Well, that's closer to 1 than 0.5, so 1:48 the correlation in our dataset between height and 1:52 weight is 0.85, which is a positive correlation. 1:56 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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