Which Excel function is used to calculate the correlation coefficient?

The function used to calculate the correlation coefficient in Excel is indeed the one that combines two sets of data to produce a measure of the strength and direction of the linear relationship between them. The appropriate function is =CORREL(array 1, array 2).

This function takes two arguments—two arrays of data points—and returns the correlation coefficient, which ranges from -1 to 1. A coefficient close to 1 indicates a strong positive correlation, while a value close to -1 indicates a strong negative correlation. A value around 0 suggests no correlation.

Understanding the correlation coefficient is vital in statistical analysis, as it helps to quantify the relationship between variables, allowing for better decision-making based on their interplay. Other functions, such as COVAR or COVARIANCE, are related to measuring the relationship between two variables but focus on the variability and co-movement rather than the correlation coefficient itself. The =CORRELATE function is not a valid function in Excel, making it inapplicable for this calculation.

Thus, the selection of the =CORREL function is the right choice when seeking to determine the correlation coefficient between two datasets.