Consider the following: Regression Model A has the following attributes: b 0 = 2
ID: 3159570 • Letter: C
Question
Consider the following:
Regression Model A has the following attributes:
b0 = 2.717
b1 = 0.166
t-statistic = 0.688
p-value = 0.509
QQ Plot and Residual Plots for Model A:
Regression Model B has the following attributes AFTER removing the outlier from Model A:
b0 = 0.108
b1 = 0.612
t-statistic = 3.576
p-value = 0.007
QQ Plot and Residual Plots for Model B:
Comparing the results of the Model A and Model B, what impact did removing the outlier have on the apparent significance of the correlation between tobacco and alcohol consumption? Explain your answer.
0 b 0Explanation / Answer
Removing the outlier increases the correlation between alcohol and tobacco consumption.
The P-value for model 2 < 0.05 which suggests that there is no significant difference in the consumption of alcohol and tobacco.