Microsoft Office Tutorials and References

In Depth Information

**ASSIGNMENT 2: USING EXCEL FOR DECISION SUPPORT**

FIGURE 12-10

Yearly EPS data and scatter plot

Use the CORREL function to show the strength of the relationship between the index and average EPS

data. Place the formula in a spot that lets you see the relationship easily. Your worksheet should look like

Figure 12-11.

FIGURE 12-11

Yearly average EPS data and index scatter plot with correlation

A correlation value of .56 suggests a weak relationship between the two sets of illustrative data. In fact,

the two scatter plots do not look much alike, and so the correlation value confirms the results of the visual

inspection. A strong relationship would be suggested by correlation values greater than .70.