From the course: Marketing Attribution and Mix Modeling

Unlock the full course today

Join today to access over 23,200 courses taught by industry experts.

Variables with positive and negative correlations

Variables with positive and negative correlations

From the course: Marketing Attribution and Mix Modeling

Start my 1-month free trial Buy for my team

Variables with positive and negative correlations

“

- [Instructor] You've probably heard the term, correlation isn't causation, but if a variable isn't at least correlated to sales, it probably doesn't do much to cause sales either. Calculating correlation is simple in Excel and Google Sheets, so let's look at how to do that. This is data from an ice cream store who might want to know whether temperature is correlated with their sales. This is important because you can't tell whether marketing is doing a good job unless you account for all the other major factors that can impact your sales numbers. In order to do a correlation in Google Sheets and Excel, we use the CORREL function. So that's equals C-O-R-R-E-L and then open brackets. We just want to choose data Y, which in our case would be revenue. That's the thing that you're trying to correlate with. And then we want data X, so that's the thing that you think is correlated. In this case, we think temperature is…

Contents