Question 2.82

2.82 What’s wrong?

Each of the following statements contains an error. Describe each error and explain why the statement is wrong.

  1. An outlier will always have a large residual.
  2. If we have data at values of x equal to 1, 2, 3, 4, and 5, and we try to predict the value of y at x = 2.5 using a least-squares regression line, we are extrapolating.
  3. High correlation implies causation.