## What are two regression lines?

The first is a line of regression of y on x, which can be used to estimate y given x. The other is a line of regression of x on y, used to estimate x given y. If there is a perfect correlation between the data (in other words, if all the points lie on a straight line), then the two regression lines will be the same.

## Which statement about outliers is true?

Which statement about outliers is true? Outliers should be identified and removed from a dataset. Outliers should be part of the training dataset but should not be present in the test data. Outliers should be part of the test dataset but should not be present in the training data.

## When should you keep an outlier?

Outliers: To Drop or Not to Drop

- If it is obvious that the outlier is due to incorrectly entered or measured data, you should drop the outlier:
- If the outlier does not change the results but does affect assumptions, you may drop the outlier.
- More commonly, the outlier affects both results and assumptions.

## Which of the following statement is true about outliers in linear regression?

18) Which of the following statement is true about outliers in Linear regression? The slope of the regression line will change due to outliers in most of the cases. So Linear Regression is sensitive to outliers.

## How do you solve outliers in time series?

For non-seasonal time series, outliers are replaced by linear interpolation. For seasonal time series, the seasonal component from the STL fit is removed and the seasonally adjusted series is linearly interpolated to replace the outliers, before re-seasonalizing the result.

## How many standard deviations from the mean is an outlier?

Three standard deviations

## What is the effect of outliers?

Outliers affect the mean value of the data but have little effect on the median or mode of a given set of data.

## Should outliers be eliminated from frequency counts and why?

You should proceed with caution when considering to remove observations from the data. In many cases, there is a valid reason for these observations to be outliers and that is what the researcher should be studying. So eliminating them may in fact cause the data to appear normally distributed.

## How are outliers treated?

5 ways to deal with outliers in data

- Set up a filter in your testing tool. Even though this has a little cost, filtering out outliers is worth it.
- Remove or change outliers during post-test analysis.
- Change the value of outliers.
- Consider the underlying distribution.
- Consider the value of mild outliers.

## How do you explain linear regression in interview?

What is linear regression? In simple terms, linear regression is a method of finding the best straight line fitting to the given data, i.e. finding the best linear relationship between the independent and dependent variables.

## How do outliers affect the mean?

Outlier An extreme value in a set of data which is much higher or lower than the other numbers. Outliers affect the mean value of the data but have little effect on the median or mode of a given set of data.

## How do you find outliers in data?

Multiplying the interquartile range (IQR) by 1.5 will give us a way to determine whether a certain value is an outlier. If we subtract 1.5 x IQR from the first quartile, any data values that are less than this number are considered outliers.

## What is an outlier in statistics example?

A value that “lies outside” (is much smaller or larger than) most of the other values in a set of data. For example in the scores 25,29,3,27,28 both 3 and 85 are “outliers”.

## What is the two standard deviations rule for outliers?

Using Z-scores to Detect Outliers Z-scores are the number of standard deviations above and below the mean that each value falls. For example, a Z-score of 2 indicates that an observation is two standard deviations above the average while a Z-score of -2 signifies it is two standard deviations below the mean.

## Which of the following is a regression line?

When the regression line is linear (y=ax+b) the regression coefficient is the constant (a) that represents the rate of change of one variable (y) as a function of changes in the other (x) i.e. it is the slope of the regression line.

## Which of the following statement is incorrect with respect to outliers?

4. Which of the following statement is incorrect with respect to outliers? Explanation: Outliers can conform to the regression relationship.

## How do you choose to remove outliers?

If you drop outliers:

- Trim the data set, but replace outliers with the nearest “good” data, as opposed to truncating them completely. (This called Winsorization.)
- Replace outliers with the mean or median (whichever better represents for your data) for that variable to avoid a missing data point.

## Why would you include an outlier?

Given the problems they can cause, you might think that it’s best to remove them from your data. Outliers increase the variability in your data, which decreases statistical power. Consequently, excluding outliers can cause your results to become statistically significant.

## What are 2 things we should never do with outliers?

There are two things we should never do with outliers. The first is to silently leave an outlier in place and proceed as if nothing were unusual. The other is to drop an outlier from the analysis without comment just because it’s unusual.

## How do you classify outliers?

One definition of outlier is any data point more than 1.5 interquartile ranges (IQRs) below the first quartile or above the third quartile. Note: The IQR definition given here is widely used but is not the last word in determining whether a given number is an outlier. IQR = 10.5 – 3.5 = 7, so 1.5·IQR = 10.5.

## Do you include outliers in mean?

They also stayed around where most of the data is. So it seems that outliers have the biggest effect on the mean, and not so much on the median or mode. Hint: calculate the median and mode when you have outliers.

## How do you identify potential outliers?

The IQR can help to determine potential outliers. A value is suspected to be a potential outlier if it is less than (1.5)(IQR) below the first quartile or more than (1.5)(IQR) above the third quartile. Potential outliers always require further investigation.

## What are the two regression equations?

The functionai relation developed between the two correlated variables are called regression equations. The regression equation of x on y is: (X – X̄) = bxy (Y – Ȳ) where bxy-the regression coefficient of x on y.