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In the context of linear regression, an influential point is a data point whose

ID: 3219730 • Letter: I

Question

In the context of linear regression, an influential point is a data point whose removal would which of the least squares regression line of y on x. For reasonably large data sets, following are true? I. Any point with a large residual is an influential point. II. Any point that is an outlier in the x-direction is an influential point. III. Removal of an influential point could increase the absolute value of the correlation coefficient (A) II only (B) III only (C) I and II only (D) II and III only (E) I, II, and III.

Explanation / Answer

(D) is th corect answer.

Inflencial Point need not always have a large residual.