How To Do A Pearson Correlation In Excel
One way to quantify the relationship betwixt two variables is to employ the Pearson correlation coefficient which is a measure of the linear association between two variables.
Information technology always takes on a value between -1 and one where:
- -one indicates a perfectly negative linear correlation between ii variables
- 0 indicates no linear correlation between two variables
- ane indicates a perfectly positive linear correlation between ii variables
To determine if a correlation coefficient is statistically significant you can perform a correlation test, which involves calculating a t-score and a respective p-value.
The formula to calculate the t-score is:
t = r√(north-ii) / (1-rtwo)
where:
- r: Correlation coefficient
- n: The sample size
The p-value is calculated every bit the corresponding two-sided p-value for the t-distribution with n-ii degrees of freedom.
The following step-past-step example shows how to perform a correlation examination in Excel.
Step 1: Enter the Data
First, let's enter some data values for two variables in Excel:
Step two: Calculate the Correlation Coefficient
Side by side, nosotros can use the CORREL() role to calculate the correlation coefficient between the 2 variables:
The correlation coefficient between the two variables turns out to be 0.803702.
This is a highly positive correlation coefficient, but to determine if information technology's statistically significant we need to calculate the corresponding t-score and p-value.
Step 3: Summate the Test Statistic and P-Value
Adjacent, we tin apply the following formulas to calculate the test statistic and the corresponding p-value:
The test statistic turns out to be iv.27124 and the corresponding p-value is0.001634.
Since this p-value is less than .05, nosotros have sufficient bear witness to say that the correlation between the two variables is statistically significant.
Additional Resources
How to Create a Correlation Matrix in Excel
How to Calculate Spearman Rank Correlation in Excel
How to Calculate Rolling Correlation in Excel
Source: https://www.statology.org/correlation-test-in-excel/
Posted by: morellitobt1957.blogspot.com
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