Question 10.35

10.35 Influence?

Your scatterplot in Exercise 10.31 shows one house whose selling price is quite high for its size. Rerun the analysis without this outlier. Does this one house influence , the location of the least-squares line, or the statistic for the slope in a way that would change your conclusions?

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10.35

With the outlier removed: goes from 43.06% to 38%, the slope decreases from 0.07659 to 0.05790, and the value goes from 4.60 to 4.07. These changes do not seem drastic, and our conclusions are the same with and without the outlier, therefore the outlier is not influential.