Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 4 - Review - Review Exercises - Page 247: 11d

Answer

Yes, the point (460, 1805) is influential.

Work Step by Step

Let's remove this point and see what happens. In MINITAB, enter the square footage values for Queens in C1 and in C2 enter the rent per month values for Queens (do not forget to remove the observation in which the square footage is 460 and rent per month is 1805). Select Stats -> Regression -> Regression -> Fit Regression Model Enter C2 in "Responses" and C1 in "Continuous Predictors" The new least-squares regression line ($ŷ =b_1x+b_0$) will be shown in "Regression Equation", where C2 is ŷ (rent per month) and C1 is x (square footage) $ŷ =2.531x-399$ The y-intercept changed substantially: from -34 to -399
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