How Does an Outlier Effect the Correlation

question 101

Multiple Choice

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.

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Definitions:

Occupancy Insurance

A type of insurance policy that provides coverage for losses or damages to a property resulting from its use or occupancy.

Bookkeeping

The systematic recording, organizing, and maintaining of financial transactions for a business.

Financial Transactions

Exchanges or transfers of money between parties, which can include buying, selling, or trading assets.

Accounts Payable

The amount of money a company owes creditors (suppliers, etc.) in return for goods and services they have delivered.