Why Outliers Are Sometimes Called Influential Observations

Outliers
Name
Institution
Date
Why Outliers are sometimes called influential observations
In a bivariate data set, unusual points are those that fall away from the other points in a scatter plot to X or y direction. An influential observation is potential if the value of X is far away from the rest of the data (Albright & Winston, 2014). To determine if an observation is influential, removing the observation makes a large impact on the value of the slope or the intercept (Albright & Winston, 2014).
Outliers are sometimes called influential observation because it has a larger residual. An outlier with y value has a high leverage hence, it influence the regression line. The outlier with y value has unusual x value and y value because of its x value. Therefore, the slope of the regression is affected (Albright & Winston, 2014).
The...