A(n)_____ observation is an observation that causes the least squares point estimates to be substantially different from what they would be if the observation were removed from the data.
A)Outlier
B)Dummy
C)Influential
D)Quadratic

Question

Quizplus · Accepted Answer

An influential observation is one that has a large impact on the least squares point estimates. If it were removed from the data, the estimates would be substantially different. Outliers are observations that are far from the rest of the data, but may not necessarily have a large impact on the estimates. Dummy variables are used to represent categorical variables in regression models. Quadratic variables are used to model nonlinear relationships.

A(n)_____ Observation Is an Observation That Causes the Least Squares