These data describe housing prices in the Philadelphia area. Each of the 110 rows of this data
Question:
(a) Make a scatterplot of the selling price on the crime rate. Which observation stands out from the others? Is this outlier unusual in terms of either marginal distribution?
(b) Find the correlation using all of the data as shown in the prior scatterplot.
(c) Exclude the distinct outlier and redraw the scat-terplot focused on the rest of the data. Does your impression of the relationship between the crime rate and selling price change?
(d) Compute the correlation without the outlier. Does it change much?
(e) Can we conclude from the correlation that crimes in the Philadelphia area cause a rise or fall in the value of real estate?
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Related Book For
Statistics For Business Decision Making And Analysis
ISBN: 9780321890269
2nd Edition
Authors: Robert Stine, Dean Foster
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