What is the effect of an outlier on the value of a correlation coefficient?
A) An outlier will always decrease a correlation coefficient.
B) An outlier will always increase a correlation coefficient.
C) An outlier might either decrease or increase a correlation coefficient, depending on where it is in relation to the other points.
D) An outlier will have no effect on a correlation coefficient.

Question

Quizplus · Accepted Answer

Outliers can have a significant impact on the value of a correlation coefficient, potentially increasing or decreasing it depending on their position relative to the main data cluster. Their effect is not uniform and depends on their location in the dataset.

What Is the Effect of an Outlier on the Value