The following is a scatter plot for profits versus sales (in tens of thousands o
ID: 3222998 • Letter: T
Question
The following is a scatter plot for profits versus sales (in tens of thousands of dollars) for a random sample of 11 large companies. The correlation between sales and profits is 0.949. Which of the following statements is FALSE? There is a positive association between x and y. If we removed the outlier, r would not change much. If we removed the outlier and recreated the scatterplot, we would have the same basic impression he relationship between sales and profit. None of the answer options is correct.Explanation / Answer
Option b, If we remove the outlier, r would not change much.
but actually if we remove the outlier the value of correlation coefficient would be decreases.
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