 We're going to show you how to use Microsoft Excel to compute the correlation coefficient. We're going to look at the correlation between two variables. As you can see, the X variable is high school average. Look at the students and their high school average. And then we want to see how well they perform on a job. The scale goes from 0 to 10. With 10 means you're doing a superb job. And 0 means horrible job, probably get fired. And we just want to know if these two variables are correlated. You just want to know if there's any association. You're not really talking about one influencing the other in this case. That's correct. We just want to know if the two variables are correlated or not. And you're going to learn in class if correlations range from plus one to minus one. So let's do it. Okay. So we have the R. That's the correlation coefficient. And we're going to put it over here. Right in between the two. Okay, now we go to the function wizard. See function wizard. And we look for the word correlation on the statistical. And there is carl. Okay. Let's say okay. And it's asking us for array one. So learning correlation doesn't matter which is the X, which is the Y. It won't make a difference in aggression. You better know which is the independent variable, which is the dependent variable. So array one loop, you went too far. It goes from B2 to B15 array to better match it exactly. And indeed it goes from D2 to D15. They don't match. It's not going to work. In other words, you need pairs. You have to have the same number in both arrays. So let's say the second row represents a person. We know that person does it's Jane Smith. Her high school average was 97.5. And she's getting a job performance rating of 10. Row three might be James Bond. Notice his high school average is 68.8. And his performance rating was three. Okay. Sorry about that. Now we say okay. And there's your correlation coefficient, 0.80, 0.800. You might probably want to get rid of a couple of decimal places. But in any case, your correlation is pretty strong, 0.80. You can format that. Format the cells. That's it, you have two decimal places. Two is probably enough, but anyway. Okay, so it's basically around 0.80. So that's called your correlation coefficient. It's positive, which indicates there's a way to test with significance. You'll learn in class. But right now we're not testing the correlation coefficient for significance. But a 0.80 is pretty, we call that a strong correlation. The first test was significance. It tends to be strong once it's over 0.5. And it does indicate that people with higher averages in high school will do better on this particular job. The performance goes up. At any rate, you can see how easy it is to compute that correlation coefficient for any two sets, for any data that comes in pairs.