Which feature makes Pearson correlation particularly vulnerable to the effect of an extreme observation?
Correct answer: A. It uses the original numerical values
- A. It uses the original numerical values
- B. It is based only on category labels
- C. It ignores the direction of association
- D. It always produces a positive value
Explanation
Pearson correlation uses deviations and products involving the actual numerical observations, so an outlier can substantially change its value. It is not restricted to categorical data and can be negative.
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About Correlation and Regression
Correlation describes the direction and strength of association between two variables using scatter diagrams and correlation coefficients. Regression covers fitted lines, regression equations, prediction and least squares, with a clear distinction between association and causation and between estimating a response value and reversing the roles of the variables.
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