Question

) An observation is said to have high leverage if: A) the value of the dependent...

) An observation is said to have high leverage if: A) the value of the dependent variable is much larger than its predicted value. (3) B) the value of the dependent variable is far from the mean of the dependent variable values. C) the value of the dependent variable is much smaller than its predicted values. D) the value of he independent variable is far from the mean of the independent variable values.

Math   Statistics-And-Probability   
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Answer #1

leverage is a measure of how far away the independent variable values of an observation are from those of the other observations.

High-leverage points are those observations, if any, made at extreme or outlying values of the independent variables such that the lack of neighbouring observations means that the fitted regression model will pass close to that particular observation.

So,an observation is high leverage when the value of the independent variable is far from the mean of the independent variable values.

So,option D) is the correct option.

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