From the course: Marketing Attribution and Mix Modeling
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Variables with positive and negative correlations
From the course: Marketing Attribution and Mix Modeling
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…
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Before and after an event: Trend analysis4m 40s
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Linear regression with a single variable6m 4s
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Variables with positive and negative correlations5m 45s
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Multivariable regression: Building your marketing mix model11m 30s
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Feature transformation with diminishing returns and adstocks10m 27s
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Statistical tests to validate your model's accuracy12m 47s
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Forecasting future scenarios for planning11m 25s
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