In a simple bivariate regression with 25 observations,which statement is most nearly correct?
A)A nonstandardized residual whose value is ei = 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)Nonnormal residuals imply biased coefficient estimates,a major problem.

Question

Quizplus · Accepted Answer

Leverage is determined by the distance of an observation in the independent variable space from the centroid of the data. A leverage statistic of 0.16 or more would indicate high leverage, meaning that the observation has a large effect on the regression line. Outliers are determined by their standardized residuals, not their raw values. Standardizing residuals can help identify potential heteroscedasticity, but it may not eliminate it completely. Nonnormal residuals do not necessarily imply biased coefficient estimates, but it could affect inferential statistics such as p-values and confidence intervals.

In a Simple Bivariate Regression with 25 Observations,which Statement Is