Question 2.74

2.74 Influence in regression

As in the previous exercise, create a group of 12 points in the lower-left corner of the scatterplot with a strong straight-line pattern (correlation at least 0.9). Click the “Show least-squares line” box to display the regression line.

  1. Add one point at the upper right that is far from the other 12 points but exactly on the regression line. Why does this outlier have no effect on the line even though it changes the correlation?
  2. Now drag this last point down until it is opposite the group of 12 points. You see that one end of the least-squares line chases this single point, while the other end remains near the middle of the original group of 12. What about the last point makes it so influential?