## Answers

**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:

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

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

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Outlier

Outlier

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