Which Statement About Influential Points Is True

question 149

Multiple Choice

Which statement about influential points is true?
I. Removal of an influential point changes the regression line.
II. Data points that are outliers in the horizontal direction are more likely to be influential than points that are outliers in the vertical direction.
III. Influential points have large residuals.

• A) I only
• B) II and III
• C) I and II
• D) I, II, and III
• E) I and III

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Definitions:

Hiring Labor

The process of finding, evaluating, and employing individuals to work for a business or organization.

Payment Stream

A sequence of payment installments made over a period of time, often associated with loans or annuities.

Rented Capital

The use of assets or equipment by a firm for a period of time in exchange for payment without owning them.

Capital Usage

Refers to how assets are employed within a firm to generate value, emphasizing the effective application of physical and financial capital.