Final answer:
Outliers in data are significantly different observations from the rest of the data. The first, third, and fourth statements are false, while the second statement is true.
Step-by-step explanation:
An outlier is an observation in a data set that is significantly different from other observations. Let's analyze each statement:
- The first statement is false. Using a scatter plot can help us visualize the relationship between distance and fare and identify outliers. Outliers may appear as data points that are located far from the general trend of the data.
- The second statement is true. Extreme values of fare, such as 300 dollars, could be considered outliers and might be removed from the data set if they are significantly different from the other fares.
- The third statement is true. If the distance was zero but the fare was very high, it would be reasonable to consider removing this data point as it doesn't make sense in the context of the problem.
- The fourth statement is false. Extreme values of distance, like 70 miles, should not automatically be considered outliers. It depends on the specific scenario and whether these values are significantly different from the rest of the data.