Having Obtained a Scatterplot to Inspect the Data, You Suspect

question 18

Multiple Choice

Having obtained a scatterplot to inspect the data, you suspect that the results for participants 4 and 17 are outliers. What should you do?

• A) Remove the cases so that the model is more representative of the majority of observations.
• B) Perform a series of diagnostic tests on the data such as Cook's distance or Mahalanobis distance.
• C) Leave the data points in and incorporate the Fick reducer variable.
• D) Rerun the analysis without the observations in to see how the regression model is affected.

---

Definitions:

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often with fixed dividends.

Common Stock

A form of equity stake that signifies ownership within a corporation, granting the owner the right to vote and a portion of the corporation's earnings via dividends.

Cash Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Stock Dividend

A type of dividend payment made in the form of additional shares of stock rather than cash, often used by companies to conserve cash.