A high leverage observation will have:
A)an unusual value of the observed Y.
B)unusual values of one or more X's.
C)a large standardized residual.
D)high correlations between the X's.

Question

Quizplus · Accepted Answer

High leverage observation refers to an observation with an extreme value of one or more X variables. This means that the observation is very different from the other observations in terms of the X variables. This can cause problems with statistical analysis because the observation has a lot of influence on the analysis. Therefore, unusual values of one or more X variables is the best choice for characteristics of a high leverage observation. Unusual values of Y or large standardized residuals are more characteristic of outliers. High correlations between X variables are more characteristic of multicollinearity.

A High Leverage Observation Will Have