Which Statement About Leverage Is Incorrect

question 120

Multiple Choice

Which statement about leverage is incorrect?

• A)Leverage refers to an observation's distance from the mean of X.
• B)If n = 40 and k = 4 predictors, a leverage statistic of .15 would indicate high leverage.
• C)If n = 180 and k = 3 predictors, a leverage statistic of .08 would indicate high leverage.

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Definitions:

Cognitive Inertia

The tendency of individuals to rely on familiar assumptions and exhibit a reluctance to revise their thinking.

Significant Level

In statistical hypothesis testing, the threshold of probability at which the null hypothesis is rejected, commonly set at 0.05 or 5% risk of concluding a false positive.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Real Differences

Actual disparities or distinctions that exist between entities, concepts, or phenomena.