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Chapter 4: Q. 12 (page 192)

12. In the context of regression analysis, what is an

a. outlier?

b. influential observation?

Short Answer

Expert verified

a. Outliers are data points that lie far away from the regression line.

b. The regression equation changes considerably when a data point is removed that is influential.

Step by step solution

01

Part (a) Step 1: Concept Introduction

Statistical regression analysis enables you to determine the relationship between two or more variables. Whenever, to predict a continuous dependent variable, then regression analysis has been used.

02

Part (a) Step 2: Explanation 

The outlier is a data point that is significantly different from the regression line, in comparison with other data points.

03

Part (b) Step 3: Concept Introduction

Statistical regression analysis enables you to determine the relationship between two or more variables. Whenever, to predict a continuous dependent variable, then regression analysis has been used.

04

Part (b) Step 4: Explanation 

In a regression equation, an influential point is a data point whose removal causes the equation to change greatly.

An influential point is a data point that affects the slope of the regression line.

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a) Decide whether finding a regression line for the data is reasonable. If so, then also do puts (b)-(d).

(a) Plot the data points and the first linear equation on one graph and the data points and the second linear equation on another.

(b) Construct tables for x,y,e,e2,y^

(c) Determine which line fits the data points better according to the least-square criterion.
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