Correlation Outlier B4795F
1. **State the problem:** We have a bivariate data set with an outlier and want to find the correlation coefficient with and without the outlier, then determine if the outlier changes the evidence for a significant linear correlation.
2. **Formula for correlation coefficient $r$:**
$$r = \frac{n\sum xy - \sum x \sum y}{\sqrt{(n\sum x^2 - (\sum x)^2)(n\sum y^2 - (\sum y)^2)}}$$
where $n$ is the number of data points, $x$ and $y$ are the variables.
3. **Identify the outlier:** The point $(50.7, 108)$ is the outlier because $x=50.7$ is much larger than other $x$ values.
4. **Calculate $r$ with the outlier:** Using all 15 points, compute sums and apply the formula. This yields approximately $$r_w \approx -0.11$$ (rounded).
5. **Calculate $r$ without the outlier:** Remove $(50.7,108)$, use the remaining 14 points, recompute sums and apply the formula. This yields approximately $$r_{wo} \approx 0.68$$.
6. **Interpretation:** Without the outlier, the correlation is moderately positive ($r_{wo} \approx 0.68$), indicating a positive linear relationship.
With the outlier, the correlation is near zero and negative ($r_w \approx -0.11$), suggesting no linear relationship.
7. **Conclusion:** Including the outlier changes the evidence regarding a significant linear correlation.
**Final answers:**
- Correlation coefficient with outlier: $$r_w \approx -0.11$$
- Correlation coefficient without outlier: $$r_{wo} \approx 0.68$$
- Inclusion of the outlier changes the evidence regarding a linear correlation.