Influential Observations

This section discusses the notion of influence and describes what makes a point influential. It introduces the concepts of leverage and distance, which are useful to detect influential observations.

Answers


  1. The Studentized residual measures the distance which is based on the error of the prediction for the observation. It is the combination of an observation's leverage and distance that determines its influence.

  2. It is the combination of an observation's leverage and distance that determines its influence.