How might the inclusion of this outlier affect the companys prediction of the stock price for upcoming months? A. The point (215,98) would cause an overestimation of the stock price B. The point (215,98) would not affect the predicited stock price C. The point (215,98) would cause an underestimation of the stock price  D. The point (215,98) could overestimate or underestimate the predicted value

Algebra and Trigonometry (6th Edition)
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ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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The point (215,98 is an outlier.

 

How might the inclusion of this outlier affect the companys prediction of the stock price for upcoming months?

A. The point (215,98) would cause an overestimation of the stock price

B. The point (215,98) would not affect the predicited stock price

C. The point (215,98) would cause an underestimation of the stock price 

D. The point (215,98) could overestimate or underestimate the predicted value

The following graph shows the revenue and stock price for a company for a random sample of months. The company has chosen to fit the data with an exponential model with = 0.82.
Stock Price
460
440
420
400
380
360
340
320
280
260
240
220
200
180
160
140
r2 = 0.82
120
100
80
60
40
20
Revenue
50
100
150
200
250
300
350
400
450
500
550
The point (215,98) is an outlier.
How might the inclusion of this outlier affect the company's prediction of the stock price for upcoming months?
Transcribed Image Text:The following graph shows the revenue and stock price for a company for a random sample of months. The company has chosen to fit the data with an exponential model with = 0.82. Stock Price 460 440 420 400 380 360 340 320 280 260 240 220 200 180 160 140 r2 = 0.82 120 100 80 60 40 20 Revenue 50 100 150 200 250 300 350 400 450 500 550 The point (215,98) is an outlier. How might the inclusion of this outlier affect the company's prediction of the stock price for upcoming months?
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