Influence in regression. The Correlation and Regression applet allows you

Chapter 0, Problem 5.39

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Influence in regression. The Correlation and Regression applet allows you toAPPLETanimate Figure 5.8. Click to create a group of 10 points in the lower-left corner ofthe scatterplot with a strong straight-line pattern (correlation about 0.9). Clickthe Show least-squares line box to display the regression line.(a) Add one point at the upper right that is far from the other 10 points butexactly on the regression line. Why does this outlier have no effect on the lineeven though it changes the correlation?(b) Now use the mouse to drag this last point straight down. You see that one endof the least-squares line chases this single point, while the other end remains nearthe middle of the original group of 10. What makes the last point so influential?

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