The following problem is reprinted from the November 1989Actuarial Examination on Applied Statistical Methods. Source:Society of Actuaries.
Consider the following table of data
(a) Calculate the least squares line and the correlationcoefficient.
(b) Repeat part (a), but this time delete the last point.
(c) Draw a graph of the data, and use it to explain the dramaticdifference between the answers to parts (a) and (b).
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