Unusual Data: Outliers, Leverage, and Influence

Unusual data are problematic in a least-squares regression because they can unduly influence the results of the analysis and because their presence may be a signal that the regression model fails to capture important characteristics of the data. Let’s begin by differentiating among different kinds of unusual data.

In simple regression (i.e., a linear regression model with one numeric explanatory variable), an outlier is a case whose response value ...

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