key term - Influential points

Definition

Influential points are data points that significantly affect the fit of a regression line. These points can substantially alter the slope and position of the regression line when included or excluded.

5 Must Know Facts For Your Next Test

1. Influential points are identified by their leverage and residuals.
2. Removing an influential point can change the equation of the regression line.
3. High-leverage points far from other data may not be influential if they lie on the regression line.
4. Cook's Distance is often used to measure the influence of a data point.
5. Identifying and understanding influential points is crucial for accurate predictive modeling.

Review Questions

Related terms

Leverage:

A measure of how far an independent variable deviates from its mean.

Residuals:

The differences between observed and predicted values in a regression model.

Cook's Distance:

A metric used to identify influential data points by measuring their impact on the estimated regression coefficients.