In Chapter 17, Exercise 33 we found a model for GDP per Capita from three country characteristics: Cell phones/100 people, Internet Users/100 people, and Primary Completion Rate. A look at leverage values and Cook’s distance identifies three countries with high leverage (above 0.10) as Bahrain, Burkina Faso, and Israel and one country, Luxembourg, that stands as an outlier in Cook’s distance.
On the next page are summary statistics for each variable in the model and the rows for those four countries.
a) Explain why each country was identified as a possible high influence point.
b) What might you consider doing next?