What you’ll learn to do: Identify outliers graphically and numerically by a given scatter plot and comparing residuals to two standard errors

Can we predict the price of a diamond ring from the size (or the number of karats) of the diamond? Although a linear model may be a good fit for most diamonds, there could be diamond rings that don’t follow the general trend of prices due to additional ring features, which make the ring more expensive. Identifying points that don’t follow the general trend will be discussed in this section.