Using the Hat Matrix Elements H_i to Determine Influential Points

question 8

Multiple Choice

Using the hat matrix elements h_i to determine influential points in a multiple regression model with k independent variable and n observations,X_i is an influential point if

• A) h_i > n(k + 1)/2.
• B) h_i > 2(k + 1)/n.
• C) h_i < n(k + 1)/2.
• D) h_i < 2(k + 1)/n.

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Definitions:

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of periods to identify trends and growth patterns.

Income Statement

The income statement is a financial report that provides a summary of a company's revenues, expenses, and profits/losses over a specified period.

Sales

Revenue earned from selling goods or services over a certain period.

Percent Change

A measure that indicates the relative difference between an initial value and a final value, expressed as a percentage.