The following is a scatterplot of a company's profits versus their sales (in dollars). Each point on the plot represents profits and sales during one of the months in the sample. Assume that the point in the far upper right was erroneous, resulting from inaccurate data entry. Which of the following statements will be correct once that point is removed from the regression analysis?
A)The slope will decrease but will remain positive.
B)The slope will decrease and may become negative.
C)There will still be a clear linear trend, because the points are randomly scattered above and below the zero line.
D)The assumptions for regression will be violated and there can be no definitive, straight-line trend.

Question

The following is a scatterplot of a company's profits versus their sales (in dollars). Each point on the plot represents profits and sales during one of the months in the sample.  Assume that the point in the far upper right was erroneous, resulting from inaccurate data entry. Which of the following statements will be correct once that point is removed from the regression analysis?
A)The slope will decrease but will remain positive. 
B)The slope will decrease and may become negative. 
C)There will still be a clear linear trend, because the points are randomly scattered above and below the zero line. 
D)The assumptions for regression will be violated and there can be no definitive, straight-line trend.

Quizplus · Accepted Answer

The Answer of The following is a scatterplot of a company's profits versus their sales (in dollars). Each point on the plot represents profits and sales during one of the months in the sample.  Assume that the point in the far upper right was erroneous, resulting from inaccurate data entry. Which of the following statements will be correct once that point is removed from the regression analysis?
A)The slope will decrease but will remain positive. 
B)The slope will decrease and may become negative. 
C)There will still be a clear linear trend, because the points are randomly scattered above and below the zero line. 
D)The assumptions for regression will be violated and there can be no definitive, straight-line trend.

The Following Is a Scatterplot of a Company's Profits Versus