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moriniaFlag for United States of America asked on

caculating a variance in Excel

Experts,

I have to columns of data.  One has the number of claims for a member.  The other has the number of months the member is enrolled.

i am trying to calculate the variance to see if there is a correlation between the two.  Does anyone have any idea how I would dot this in Excel.

Using ColumnA as number of claims
          ColumnB as number of months enrolled
Microsoft ExcelMath / Science

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Last Comment
Steve

8/22/2022 - Mon
TommySzalapski

The square of the population standard deviation (Excel STDEVP function) is the variance.
=POWER(STDEVP(A:A),2)
ASKER CERTIFIED SOLUTION
Steve

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ASKER
morinia

The_Barman,

If I receive a value of .348, does that mean there is little correlation?
Steve

correct.

Correlation Coeficient runs between 1 and -1 with 1 being perfect positive corelation and 0 being no correlation.
Correlation above .8 or below -.8 are good. Between .5 and -.5 is poor correlation.

As .348^2 (.348 squared) = 0.1211 = 12%
Only 12% of the change in the Y value can be attributed to variation in the X value.
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