Sketch a scatterplot in which the presence of an outlier decreases the observed correlation between the response and explanatory variables. Indicate on your plot which point is the outlier.

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Step 1 Let the following data be the initial dataset (without any outliers): [x 1 2 3 4 5 y 1 3 5 7 9] Since all points lie on the line [y=2x−1], the correlation between those two variables is [r=1] (there is a perfect relationship between the two variables, since there exists a line that passes through all the points, and also, the slope of this line is [b1=2&amp;gt;0] so the association between the two variables is positive which implies that the correlation is also positive). Let&#039;s add the point (6,2) to our initial dataset, so that the data is: [x 1 2 3 4 5 6 y 1 3 5 7 9 2] The outlier that we&#039;ve just added clearly doesn’t belong to the line [y=2x−1] since [2≠q2⋅6−1=11]. Therefore, we lost the perfect relationship between the two variables, so the correlation coefficient decreased and the new correlation coefficient is [r&amp;lt;1]. Here is the scatterplot of the given data (outlier is coloured in blue):

Sketch a scatterplot in which the presence of an outlier decreases the observed correlation between the response and explanatory variables. Indicate on your plot which point is the outlier.

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