Question

Which of the following statements is correct?

1.Outliers are always observations that don't make sense in the context of the problem
2.We can identify outliers visually by looking at a histogram or scatter plot for both Y variables and X variables
3.Outliers only refer to the observations that are very far from the center or from the other observations
4.Even though outliers are unusual, we can still make good predictions for them as long as we create a good model

Answer 1

Outliers are observations that are very far from the center or from the other observations, and they can have a significant impact on the results of statistical analyses.

Step-by-step explanation:

The correct statement regarding outliers is option 3: Outliers only refer to the observations that are very far from the center or from the other observations. Outliers are data points that are significantly different from the rest of the data and can have a big impact on the results of statistical analyses. They can be identified by examining the distance of the data points from the least squares regression line or by using graphical methods such as scatter plots or histograms.