Concept explainers
The article “$115K! The 13 Best Paying U.S. Companies” (USA TODAY, August 11, 2015) gave the following data on median worker pay (in thousands of dollars) and the 1-year percent change in stock price for the 13 highest paying companies in the United States. A
The equation of the least-squares line with y = Percent change in stock price and x = Median worker pay is
- a. The observations for Jupiter Networks and Netflix are both far removed from the other points in the scatterplot in the x direction. Which of these observations would have the greatest impact on the equation of the least-squares line if it were to be omitted from the data set?
- b. Explain the difference between an influential observation and an outlier in a bivariate data set.
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INTRODUCTION TO STATISTICS & DATA ANALYS
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EBK STATISTICAL TECHNIQUES IN BUSINESS
Elementary Statistics ( 3rd International Edition ) Isbn:9781260092561
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