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What is the effect of an outlier on the value of a correlation coefficient?

Answer:

* 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.

Answer - c

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The value of a correlation is reported by a researcher to be r = -0.5. Which of the following statements is correct?One use of a regression line is?