A Probability and Statistics Post: An animation of leverage and an application to global temperatures
Outliers have outsized influence on a regression line because the technique minimizes the sum of the squared distances of the observations to the line. The squared distance to the outlier would be large if the line wasn't drawn closer to it.
Outliers have outsized influence on a regression line because the technique minimizes the sum of the squared distances of the observations to the line. The squared distance to the outlier would be large if the line wasn't drawn closer to it.