High Leverage Point With a Small Residual
In a regression analysis, which statement best describes a point that has high leverage and a small residual?
A
It always causes the correlation coefficient to drop to zero.
B
It is automatically classified as an outlier in the context of the response variable.
C
Although it has a high potential to influence the regression line due to its extreme x-value, if it aligns with the overall trend, its impact on the line is minimal.
D
It will distort the regression line significantly regardless of its alignment with the other data.
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