Consider the following to answer the question(s) below:
Consider the following scatter diagram for 24 of the top grossing movies of all time. The data include the highest grossing films for which world box office receipts and budgets were available. The top two were Avatar and Titanic.
-The effect of including the data for Avatar and Titanic is
A) to make the value of the slope of the regression line larger
B) to make the value of the slope of the regression line smaller
C) to decrease the correlation between the two variables
D) to reduce the residual standard deviation
E) cannot be determined with the information provided

Question

Consider the following to answer the question(s) below:
Consider the following scatter diagram for 24 of the top grossing movies of all time. The data include the highest grossing films for which world box office receipts and budgets were available. The top two were Avatar and Titanic.  
-The effect of including the data for Avatar and Titanic is
A) to make the value of the slope of the regression line larger 
B) to make the value of the slope of the regression line smaller 
C) to decrease the correlation between the two variables 
D) to reduce the residual standard deviation 
E) cannot be determined with the information provided

Quizplus · Accepted Answer

Including the data for Avatar and Titanic increases the sample size, which makes the slope of the regression line more precise.

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