The article ?$115K! The 13 Best Paying U.S. Companies? (USA TODAY, August 11, 2015) gave the following
Question:
The article ?$115K! The 13 Best Paying U.S. Companies? (USA TODAY, August 11, 2015) gave the following data on median worker pay (in thousands of dollars) and the 1-year percent change in stock price for the 13 highest paying companies in the United States. A scatterplot of these data is also shown.
The equation of the least-squares line with y = Percent change in stock price and x 5 Median worker pay is y = 2358 + 3.14x.
a. The observations for Jupiter Networks and Netflix are both far removed from the other points in the scatterplot in the x direction. Which of these observations would have the greatest impact on the equation of the least-squares line if it were to be omitted from the data set?
b. Explain the difference between an influential observation and an outlier in a bivariate data set.
Step by Step Answer:
Introduction To Statistics And Data Analysis
ISBN: 9781337793612
6th Edition
Authors: Roxy Peck, Chris Olsen, Tom Short