Use Of Correl
Table 1
|
Table 2
| ||||
Month
|
Avg Temp
|
Air Cond
Sales |
Advertising
Costs |
Sales
| |
Jan
|
20
|
100
|
£2,000
|
£20,000
| |
Feb
|
30
|
200
|
£1,000
|
£30,000
| |
Mar
|
30
|
300
|
£5,000
|
£20,000
| |
Apr
|
40
|
200
|
£1,000
|
£40,000
| |
May
|
50
|
400
|
£8,000
|
£40,000
| |
Jun
|
50
|
400
|
£1,000
|
£20,000
| |
Correlation
|
0.864
|
Correlation
|
28%
| ||
=CORREL(D5:D10,E5:E10)
|
=CORREL(G5:G10,H5:H10)
| ||||
What Does It Do ?
This function examines two sets of data to determine the degree of relationship
between the two sets.
The result will be a decimal between 0 and 1.
The larger the result, the greater the correlation.
In Table 1 the Monthly temperature is compared against the Sales of air conditioning units.
The correlation shows that there is an 0.864 realtionship between the data.
In Table 2 the Cost of advertising has been compared to Sales.
It can be formatted as percentage % to show a more meaning full result.
The correlation shows that there is an 28% realtionship between the data.
Syntax
=CORREL(Range1,Range2)
Formatting
The result will normally be shown in decimal format.
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