This is just a quick post to describe how to calculate p-values for two-variable correlations in Excel. Annoyingly, there is no direct way of doing this. Excel will give you the correlation, but not its associated p-value. It can be done, however, in a slightly roundabout way.

First, calculate the correlation between your groups:

*=correl(variable1, variable2)*

This gives you the sample test statistic r, which can be converted to t with the following formula:

where r is the correlation obtained above and n is your number of observations. Say you have 30 samples for two groups, and a r of 0.5. The calculation to obtain t is then (in excel terms):

*=(0.5*sqrt(30-2))/(sqrt(1-0.5^2))
=3.05505*

Then to assess the significance value associated with this t, simply use the tdist function (Student T distribution output):

*=t.dist.2t(t, degrees of freedom)*

This gives us results for a two-tailed distribution. Alternatively, the old tdist function can still be used, which requires the user to specify the number of tails (=tdist(t, degrees of freedom, #tails)).

Our calculation thus looks like this:

*=t.dist.2t(3.05505, 30-2)
=0.0049*

Which is the p-value for the correlation. Done!