Using the Studentized Residuals Tᵢ to Determine Influential Points in a Multiple

question 19

Multiple Choice

Using the Studentized residuals tᵢ to determine influential points in a multiple regression model with k independent variable and n observations and letting tn₋k₋₂ denote the upper critical value of a two-tail t test with a 0.10 level of significance, Xᵢ is an influential point if

• A) |tᵢ| < tn₋k₋₁.
• B) |tᵢ| > tn₋k₋₁.
• C) |tᵢ| < tn₋k₋₂.
• D) |tᵢ| > tn₋k₋₂.

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Definitions:

Net Income

The total profit or loss of a company after all revenues and expenses have been accounted for, also known as net earnings.

Indirect Method

A method for preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to calculate net cash from operating activities.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of an entity, typically involving the inflow of cash from investors or banks.

Indirect Method

A technique used in the statement of cash flows to adjust net income for the effects of non-cash transactions and changes in working capital to determine cash flow from operating activities.