What effect does a high leverage point have on a multiple linear regression model?

  • It can significantly affect the estimate of the regression coefficients
  • It does not affect the model
  • It increases the R-squared value
  • It leads to homoscedasticity
High leverage points are observations with extreme values on the predictor variables. They can have a disproportionate influence on the estimation of the regression coefficients, potentially leading to a less reliable model.
Add your answer
Loading...

Leave a comment

Your email address will not be published. Required fields are marked *