Recognize Unusual or Extraordinary Points

question 12

Multiple Choice

Recognize unusual or extraordinary points.
-Suppose a regression model is fit to data and an unusual point is recognized in the
Residual plot. If omitting this point results in a regression model that is very different
From the original, we call this point

• A) an outlier.
• B) a high leverage point.
• C) an influential point.
• D) an extrapolated point.
• E) all of the above.

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Definitions:

Transfer Price

The price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments.

General Rule

A principle or guideline that applies broadly across different contexts or situations, often serving as a standard for decision-making.

External Sales Price

The price at which a product or service is sold to customers outside of the company, as opposed to internal transfer pricing within different divisions of the same company.

Opportunity Cost

Opportunity Cost refers to the potential benefits or income lost when choosing one alternative over another.