Question: 1. What are influential observations? How do influential observations potentially affect the regression equation? 2. Suppose you are given a multiple regression equation to predict

1. What are influential observations? How do influential observations potentially affect the regression equation?
2. Suppose you are given a multiple regression equation to predict the inflation rate in Canada, based on the data between the years 2006 and 2019. Can you use this equation to predict the inflation rate in Canada for the year 2021? If not, why not?
3. How do collinearity and nonlinearity affect the regression results?
4. Does the sample size have any effect on the results of multiple regression analysis? If so, in what way?

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1 Influential observations are data points that have a strong impact on the regression results and can significantly affect the estimated regression equation These observations have the potential to a... View full answer

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