In a simple bivariate regression with 25 observations, which statement is most nearly correct? A)A nonstandardized residual whose value is e_i = 4.22 would be considered an outlier. B)A leverage statistic of 0.16 or more would indicate high leverage. C)Standardizing the residuals will eliminate any heteroscedasticity. D)Non-normal residuals imply biased coefficient estimates, a major problem.

Question

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A leverage statistic of 0.16 or more would indicate high leverage, meaning that the corresponding observation has a high influence on the regression line. Choice A is incorrect as the value provided alone is not sufficient to determine if a residual is an outlier. Choice C is incorrect as standardizing the residuals will not necessarily eliminate heteroscedasticity. Choice D is incorrect as non-normal residuals do not necessarily imply biased coefficient estimates, it merely suggests that the assumption of normality may not hold.

In a Simple Bivariate Regression with 25 Observations, Which Statement