High-leverage points are data points that have a strong influence on the regression line. These points can significantly affect the slope and position of the line.
Imagine you're playing a game of tug-of-war, and there's one person who is exceptionally strong. This person has a high leverage point because their actions can greatly impact the outcome of the game.
Outliers: Outliers are extreme data points that lie far away from the other data. They can also be high-leverage points if they have a significant effect on the regression line.
Influential Observations: Influential observations are specific data points that have a large impact on the results of statistical analysis, including regression models.
Cook's Distance: Cook's Distance is a measure used to identify influential observations in regression analysis. It quantifies how much an observation affects model predictions when it is included or excluded from the analysis.
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