Data Analysis (using Microsoft Excel)
Using Microsoft Excel, enter the Age and Income data (textbook exhibit 7.17) into a spreadsheet.
Using the “intuition” of what a statistical correlation is as described in the slides, calculate the correlation between Age and Income. Insert columns to show intermediate steps in calculating z-scores.
Verify that this is equivalent to the correlation output in Excel’s Data Analysis routines
Excel has the following function to correlate values (for example) in cells A1:A10 with B1:B10
= CORREL(A1:A10,B1:B10)
If correct, then your calculated answer should match Excel’s function
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