Recognize Unusual or Extraordinary Points

question 1

Multiple Choice

Recognize unusual or extraordinary points.
-Which of the following statements is false?

• A) Outliers are observations with large residuals.
• B) A high leverage point has an x-value that is far from the mean of the x-values.
• C) A high leverage point is an influential point.
• D) Influential points may be difficult to detect in residual plots.
• E) None of the above.

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Definitions:

Medicare

A federal health insurance program in the United States primarily for people aged 65 and older, along with certain younger people with disabilities.

Excise Taxes

Taxes paid when purchases are made on a specific good, such as gasoline or tobacco, often included in the price of the product.

Tax Burden

The measure of the total amount of taxes that individuals, businesses, or other entities must pay.

Medicaid

Medicaid is a government-funded program in the United States that provides health care services to low-income individuals and families.