What impact can an outlier have on a correlation?
A)An outlier that is consistent with the trend of the rest of the data will inflate the correlation.
B)An outlier that is not consistent with the rest of the data can deflate the correlation.
C)An outlier in a smaller sample has an especially large impact on a correlation, compared to an outlier in a larger sample.
D)All of the above.

Question

Quizplus · Accepted Answer

Outliers can significantly affect the correlation in a dataset. An outlier that follows the trend can artificially inflate the correlation, making the relationship seem stronger than it is. Conversely, an outlier that does not follow the trend can weaken the observed correlation. Additionally, the impact of an outlier is more pronounced in smaller samples because each data point, including the outlier, represents a larger fraction of the dataset.

What Impact Can an Outlier Have on a Correlation