How to calculate a correlation coefficient in Excel (2023)
When we do data analysis, we usually check 2 things about variables.
- What is the strength between them? (strongly correlated or not )
- What is the pattern between them? (the variable x increases or decreases with the change in variable y)
To check that, we have to do a correlation analysis.
This is the formula to calculate the Pearson correlation coefficient😱
The above formula is too complex to calculate the correlation coefficient.
You have to do many complex calculations to get the final answer. Isn’t it a headache for you?🙄
Relax! Excel will take care of all your problems🤔
The Correlation Coefficient can be quickly calculated in Excel. Just need to select two columns with data points for the formula😊
You can use Excel’s “Data analysis Tool Pak” if you wish to compare more than two variables in your data analysis👍
I’ll explain how to do correlation calculation functions in Excel using the below data set.
If you want to follow along with me, you may click here to get the practice workbook.