Effects of Outliers on Correlation

As we have seen, outliers can have a strong effect on our data when we are calculating the correlation coefficient. After we consider each of the outliers individually, sometimes it's appropriate to throw out outliers. Other times however, it remains necessary to include them.

Watch this video to see an example of how to consider individual outliers and to determine if they should be thrown out or included. (If you have a hard time understanding his accent, turn on Closed Captioning.)