It’s quite an involved calculation with a lot of intermediate steps.
In this example, the x variable is the height and the y variable is the weight. The correlation coefficient r can be calculated with the above formula where x and y are the variables which you want to test for correlation. Intuitively, you would think a person’s height and weight are related, but the correlation coefficient will show you mathematically how related or unrelated these are.
The calculation can have a value between 0 and 1.Ī value of 0 indicates the two variables are highly unrelated and a value of 1 indicates they are highly related.įor example, you might have data on height (meters) and weight (kilograms) for a sample of people and want to know if these two variables are related. The correlation coefficient is also known as the Pearson Correlation Coefficient and it is a measurement of how related two variables are. In this post, I’ll show you 3 ways to calculate the correlation coefficient in Excel.