00:01
We have been given a scatter plot and we want to identify the outlier.
00:07
So if we look at this plot, we have x and we have y and we have the actual data points represented as dots.
00:15
We have also been given the line of best fit.
00:20
So i'll label this best fit.
00:29
So if you were going to perform a simple linear regression on this, you would get a line that best represents the data and that is the line.
00:38
It's labeled y hat, which means predicted value of y.
00:43
So if you take any value, mash it up, it would give you the predicted value at that point.
00:49
Now we also have two extra lines given to us.
00:53
One above, one below.
00:56
And these are representing plus and minus two standard deviations.
01:01
So s here is for standard deviation.
01:06
So for this we can see how closely the points align to the line of best fit.
01:12
So if you look at most of the points, most of them are in this band.
01:18
They are within two standard deviations of the predicted value...