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Chapter 3: Q 34. (page 175)

If we leave out the low outlier, the correlation for the remaining 13 points in the preceding figure is closest to

a. 鈭�0.95.

b. 鈭�0.65.

c. 0.

d. 0.65.

e. 0.95.

Short Answer

Expert verified

The correct option is (d)0.65.

Step by step solution

01

Given information

There are total 14 data points out of which one is an outlier.

02

Explanation

Outlier is being removed from the data set.

It is well known that the existence of an outlier in a data collection lowers the linearity of the variables. Also, when the linearity of the correlation decreases, the value of the correlation decreases. The variables would have a strong positive association if the outlier was eliminated, however, the presented scatterplot shows that the variables have a moderate positive relationship because the data points are spread. Thus, the correct option is (d).

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