Statics Interview Question:

What is the effect of an outlier on the value of a correlation coefficient?

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* a) An outlier will always decrease a correlation coefficient.
* b) An outlier will always increase a correlation coefficient.
* c) An outlier might either decrease or increase a correlation coefficient, depending on where it is in relation to the other points
* d) An outlier will have no effect on a correlation coefficient.

Answer - c
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