Question: You are doing regression with one explanatory variable and so consider the basic linear regression model (y_{i}=beta_{0}+beta_{1} x_{i}+varepsilon_{i}). a. Show that the (i) th leverage
You are doing regression with one explanatory variable and so consider the basic linear regression model \(y_{i}=\beta_{0}+\beta_{1} x_{i}+\varepsilon_{i}\).
a. Show that the \(i\) th leverage can be simplified to
\[h_{i i}=\frac{1}{n}+\frac{\left(x_{i}-\bar{x}\right)^{2}}{(n-1) s_{x}^{2}}\]
b. Show that \(\bar{h}=2 / n\).
c. Suppose that \(h_{i i}=6 / n\). How many standard deviations is \(x_{i}\) away (either above or below) from the mean?
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