Leverage

Leverage measures how unusual or extreme the explanatory variables are for each observation. Very roughly, a high leverage means that the explanatory variable has values that are different to other points in the dataset. In the case of simple linear regression, where there is only one explanatory value, this typically means values with a very high or very low explanatory value.

Here, you'll look at highly leveraged values in the model of house price versus the square root of distance from the nearest MRT station in the Taiwan real estate dataset.

Guess which observations you think will have a high leverage, then move the slider to find out.

Which statement is true?