Example 12.11 from Statistics, 12.5 Outliers
In the third exam/final exam example, you can determine whether there is an outlier. If there is an outlier, as an exercise, delete it and fit the remaining data to a new line. For this example, the new line ought to fit the remaining data better. This means the SSE (sum of the squared errors) should be smaller and the correlation coefficient ought to be closer to 1 or –1.
Work it out on paper first. Then open the solution one step at a time, and stop as soon as you can finish on your own.
As we did with the equation of the regression line and the correlation coefficient, we will use technology to calculate this standard deviation for us. Using the LinRegTTest with these data, scroll down through the output screens to find s = 16.412.
Line Y2 = –173.5 + 4.83x – 2(16.4), and line Y3 = –173.5 + 4.83x + 2(16.4),
where ŷ = –173.5 + 4.83x is the line of best fit. Y2 and Y3 have the same slope as the line of best fit.
Graph the scatter plot with the best-fit line in equation Y1, then enter the two extra lines as Y2 and Y3 in the Y= equation editor. Press ZOOM-9 to get a good view. You will see that the only point that is not between Y2 and Y3 is the point (65, 175). On the calculator screen, it is barely outside these lines, but it is considered an outlier because it is more than two standard deviations away from the best-fit line. The outlier is the student who had a grade of 65 on the third exam and 175 on the final exam.
Sometimes a point is so close to the lines used to flag outliers on the graph that it is difficult to tell whether the point is between or outside the lines. On a computer, enlarging the graph may help; on a small calculator screen, zooming in may make the graph clearer. Note that when the graph does not give a clear enough picture, you can use the numerical comparisons to identify outliers.
How did it go?