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 calculate the correlation between the number of days missed and salary increase using Excel, you can follow these steps:
1. Enter your data into two columns in an Excel worksheet. Column A should represent the number of days missed, and Column B should represent the salary increase.
2. Select an empty cell where you want to display the correlation result.
3. Use the CORREL function in Excel to calculate the correlation coefficient. The formula syntax is: =CORREL(array1, array2).
4. In the empty cell, type "=CORREL(A2:A10, B2:B10)" (assuming you have data in cells A2 to A10 and B2 to B10). Adjust the cell references according to your data range.
5. Press Enter to get the result. The cell will display the correlation coefficient between the number of days missed and salary increase.
6. Format the result according to your preference.
Remember that the correlation coefficient can range from -1 to 1. A positive correlation indicates that as one variable increase, the other variable also tends to increase. A negative correlation means that as one variable increases, the other variable tends to decrease. The closer the correlation coefficient is to -1 or 1, the stronger the correlation is, whereas a correlation coefficient closer to 0 indicates a weaker or no correlation.
Note: In Excel, if you have the Analysis ToolPak add-in enabled, you can also use the Data Analysis tool to calculate the correlation coefficient.