How does an outlier effect the correlation?
A) A single outlier has no effect.
B) A single outlier has minimal effect.
C) A single outlier can change the value of the correlation, but not its sign.
D) A single outlier can change the value and the sign of the correlation.

Question

Quizplus · Accepted Answer

A single outlier can significantly impact the correlation coefficient, potentially altering both its magnitude and direction (sign). This is because the correlation measures the strength and direction of a linear relationship between two variables, and an outlier can distort this relationship.

How Does an Outlier Effect the Correlation