Data on number of days of work missed and annual salary increase for a company's employees show that in general exployees who missed more days of work during the year received smaller raises than those who missed fewer days. A detailed analysis showed that number of days missed explained 69% of the variation in salary increases. What is the correlation between the number of days missed and salary increase?
how do you do this on excel?
To find the correlation between the number of days missed and salary increase using Excel, you can follow these steps:
1. Enter the number of days missed and salary increase values in separate columns in your Excel spreadsheet.
- Let's assume the number of days missed is in column A (A1, A2, A3, etc.) and the salary increase is in column B (B1, B2, B3, etc.).
2. Select an empty cell where you want to calculate the correlation (e.g., C1).
3. In this cell, use the Excel CORREL function to calculate the correlation coefficient. The formula is as follows:
=CORREL(range1, range2)
- In this case, the formula would be: =CORREL(A1:A, B1:B)
4. Press Enter to get the correlation coefficient.
The result will be a value between -1 and 1, representing the strength and direction of the correlation. A positive correlation means that as the number of days missed increases, the salary increase also tends to increase. A negative correlation means that as the number of days missed increases, the salary increase tends to decrease.
In our case, since the number of days missed explains 69% of the variation in salary increases, the correlation coefficient would likely be a positive value close to 1, indicating a moderately strong positive correlation.