Question

Question 4 (1 point) Is corelation of a scatter plot sensitive to outliers? For example, if imake a scatter plots of the data sets below do the outliers in data set 2 affect how correlated by data is? Explain. Data Set 1: 12 3 4 5 3 7 10 13 19 Data Set 2: 12 3 4 5 67 3 7 10 13 19 54 27

Answer 1

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Effect of Outliers

An outlier is a score that falls outside the range of the rest of the scores on the scatter plot. For example, if age is a variable and the sample is a statistics class, an outlier would be a retired individual. Depending upon where the outlier falls, the correlation coefficient may be increased or decreased.

An outlier that falls near where the regression line would normally fall would necessarily increase the size of the correlation coefficient, as shown in this figure:

Outlier

An outlier that falls some distance away from the original regression line would decrease the size of the correlation coefficient, as seen below:

Outlier

The smaller the sample size, the greater the effect of the outlier.