Using the Cook's Distance Statistic Dᵢ to Determine Influential Points

question 289

Multiple Choice

Using the Cook's distance statistic Dᵢ to determine influential points in a multiple regression model with k independent variable and n observations and letting Fᵥ₁ᵥ₂ denote the critical value of an F distribution with v₁ and v₂ degrees of freedom at a 0.50 level of significance, Xᵢ is an influential point if

• A) Dᵢ < Fk₊₁,n₋k₋₁.
• B) Dᵢ > Fk₊₁,n₋k₋₁.
• C) Dᵢ < Fn₋k₋₁, k₊₁.
• D) Dᵢ > Fn₋k₋₁, k₊₁.

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Definitions:

AMTI

Alternative Minimum Taxable Income, a calculation used to determine a taxpayer's liability for Alternative Minimum Tax, ensuring that those who benefit from certain deductions pay a minimum amount of tax.

Full Recourse Debt

Refers to a type of loan where the borrower is fully responsible for the debt if the collateral does not cover the loan amount during default.

Partnership Interests

Ownership shares in a partnership that represent a partner's stake in the entity and its operations.

At-risk Amount

The maximum amount of money an investor could lose in an investment, often used in the context of limiting losses in tax sheltered investments.