# Excel – Statistical Applications

### Widgco has provided the sales and advertising budget from the previous year. Both the Chief Financial Officer and Vice President of Marketing would like to know if there is any relationship between the typically increasing advertising budget and the sales generated.

1. In cell E4, enter the function that determines the correlation between Sales and Advertising.
2. In Cell F4, display the formula in E4, using the function FORMULATEXT.
3. In G4, comment on the correlation, what is your analysis between sales and advertising spending.

### Instructions for Frequency Worksheet

1. Copy range A1:C15 from Correlation Worksheet to Histogram Worksheet.
2. Create seven bins (7) for sales starting at \$100,000 and incrementing \$5,000 for each bin. Therefore the final bin is \$130,000. Use cells E4…E10.
3. Create six bins (6) for advertising starting at \$5,500 and incrementing \$500 for each bin. Therefore the final bin is \$8,000. Use cells H4…H9.
4. Determine the frequency of Sales and Advertising dollars in each bin, in cells F4…F10 and cells I4…I9 respectively.
5. Create Histograms for Sales and Advertising in cells E18…F26 and E31… F38 respectively. Output both a chart and graph.