Correlation calculates the Pearson product moment correlation coefficients for each pair of variables and it is used to test if variables are correlated. The correlation coefficient measures the magnitude of the linear relationship between two variables and it ranges from -1 and +1. If two variables are perfectly correlated such that when one variable increases, the other increases as well, the correlation coefficient is +1. On the other hand, if one variable increase while the other decreases, the correlation coefficient is negative.
Note: Limited to 10 variables at one time.
At the Excel Menu (For Excel 2007, go to Add-ins first)
Choose ProcessMA > Statistics > Basic Statistics > Correlation
In Variables, select the columns containing the data (Numeric, >=2 Variables)
Click OK
You have data on the sales revenue, number of sales representatives on the field, the amount spent on marketing and the range of products offered. You want to find out if there are correlated.
Open data worksheet by choosing ProcessMA > Tools > Data
Choose ProcessMA > Statistics > Basic Statistics > Correlation
In Variables, select G - Sales, H - Reps, I - Marketing, J - Products
Check Plot Partial
Click OK
Except between Marketing and Products, low p-values suggest that correlations among variables are not zero.
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