The following example allows to calculate the correlation coefficient between two series.
For the calculation we use the basic command COEF.DE.CORREL = () (excel version in Spanish) or = Correl () (in English version of excel).
The worksheet besides calculating the correlation coefficient, calculates p-value, or the probability of the test where the null hypothesis is that the correlation coefficient is different (two tails) or less or greater than 0 (one-tail).
Recall that the formula of correlation coefficient between two data sets X and Y, is:
While the null and alternative hypothesis to verify the significance of the correlation coefficient are:
The files with the example:
Monday, June 15, 2009
Calculate the Correlation with Excel
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