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.
-Which statement is not true?
A) The scatterplot shows no unusual observations.
B) The data contain high-leverage points.
C) The data contain potential influential points.
D) The data contain points which are associated with large residuals.
E) We would consider setting aside outliers and re-running the regression.

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.  
-Which statement is not true?
A) The scatterplot shows no unusual observations. 
B) The data contain high-leverage points. 
C) The data contain potential influential points. 
D) The data contain points which are associated with large residuals. 
E) We would consider setting aside outliers and re-running the regression.

Quizplus · Accepted Answer

High-leverage points, potential influential points, and points associated with large residuals are all reasons to consider outliers in a dataset. If a scatterplot shows no unusual observations, it contradicts the presence of these issues, making it the incorrect statement.

Consider the Following to Answer the Question(s) Below