Multiple Linear Regression 03 – Influence Analysis

Consider a simple linear regression model with 7 observations and 2 independent variables. The following table shows the calculated leverage, studentized residuals, and Cook’s distance for each observation:

ObservationLeverageStudentized ResidualCook’s Distance
10.151.200.10
20.10-0.800.05
30.20-1.500.15
40.250.500.08
50.30-2.000.20
60.352.500.25
70.40-1.000.18

Why is the language of the Learning Outcome Statements (LOS) different from the curriculum?
The LOS are protected under the CFA Institute's copyright, and we don't have permission to duplicate them verbatim. Therefore, we've rephrased the LOS and included alphabetical labels (a, b, c, …) to simplify cross-referencing with the original LOS in the curriculum when needed.

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