The Plot Given Below Shows the Points and the Regression

question 43

Multiple Choice

The plot given below shows the points and the regression lines for the data set on the same graph. The blue line is the regression line for all points. The red line is the regression line for the data points excluding those which influence observation. Describe the effect of the influential observation on the equation of the least squares regression line. Select the correct statement.

• A)The influential observation changes the equation of the regression line.
• B)The influential observation is located long far from the other data points.
• C)The influential observation only increases the error of estimation.
• D)The influential observation is always an outlier.