In this section, we will explore fundamental data analytics techniques using Microsoft Excel to understand relationships within sales data.

In this chapter, we will concentrate on correlation analysis to explore the interactions between various sales factors.

Understanding these relationships is crucial for making informed business decisions and optimizing marketing strategies.

Task

In this task, you will apply the correlation analysis technique learned in this chapter to a real-world sales dataset.

Сonduct a correlation analysis to determine how different sales factors, such as advertising budget and monthly visitors, correlate with monthly sales.

• Start by opening the provided Sales Data.csv in Excel.
• Ensure the Analysis ToolPak is activated in Excel to use advanced analysis functions. If not already done, activate it by navigating to File -> Options -> Add-Ins -> Manage: Excel Add-ins -> Go and check Analysis ToolPak, then click OK.
• Navigate to the Data tab and select Data Analysis.
• Choose Correlation from the list and click OK.
• Select the range of numerical data columns that include Monthly Visitors, Advertising Budget, and Monthly Sales. Ensure to check Labels in First Row.
• Output the results to a new worksheet named Correlation Results.

Note

The data shown in the video may differ from the data in the task's dataset, so ensure that your answer is based on the data from the downloadable file, not the video.