How does Pearson's Correlation Coefficient handle outliers?
- Automatically removes outliers
- Converts outliers to mean values
- Ignores outliers
- Is highly sensitive to outliers
Pearson's Correlation Coefficient is highly sensitive to outliers. This is because it involves a mean and standard deviation calculation, and these values can be greatly influenced by outliers. Even a single outlier can significantly skew the result of the correlation.
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