Even though a residual may be unusually large, the standardized residual rule might fail to identify the observation as being an outlier. This difficulty can be circumvented by using
A) categorical independent variables.
B) residual transformation.
C) studentized deleted residuals.
D) logistic regression.

Question

Even though a residual may be unusually large, the standardized residual rule might fail to identify the observation as being an outlier. This difficulty can be circumvented by using​
A) categorical independent variables.
B) ​residual transformation.
C) ​studentized deleted residuals.
D) ​logistic regression.

Quizplus · Accepted Answer

Studentized deleted residuals are a more robust measure of outlier detection than standardized residuals. They adjust for the leverage of each observation and removes the influence of any other outliers. Therefore, they are better at detecting outliers, even if the standardized residual rule fails.

Even Though a Residual May Be Unusually Large, the Standardized