The 11th person in the data of Exercise 11.53 went to work for a family business in retu...

The 11th person in the data of Exercise 11.53 went to work for a family business in return for a low salary but a large equity in the firm. This case (the high influence point in the influence plot) was removed from the data and the results reanalyzed using Systat. A portion of the output follows:

a. Should removing the high influence point in the plot increase or decrease the slope? Did it?

b. In which direction (larger or smaller) should the removal of this point change the residual standard deviation? Did it? How large was the change?

c. How should the removal of this point change the correlation? How large was this change?

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