In regression analysis, an outlier is an observation whose _____.
A) mean is larger than the standard deviation
B) residual is 0
C) mean is 0
D) residual is much larger than the rest of the residual values

Question

Quizplus · Accepted Answer

In regression analysis, an outlier is an observation whose residual is much larger than the rest of the residual values. A residual is the difference between the observed value and the fitted value for that observation, so a large residual implies that the actual value is far from what the regression model predicts. This can be due to measurement error, data entry errors, or simply a data point that does not fit the overall pattern of the data. Identifying and handling outliers is important in regression analysis, as they can greatly affect the estimated coefficients and overall model fit.

In Regression Analysis, an Outlier Is an Observation Whose _____