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I am confused between outliers and leverage points. And the difference between good and bad leverage points in time series analysis.

Can somebody help me?

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marked as duplicate by kjetil b halvorsen, Michael Chernick, mkt, Peter Flom Apr 20 at 10:39

This question has been asked before and already has an answer. If those answers do not fully address your question, please ask a new question.

  • $\begingroup$ Outliers at the end of time series can have a large impact on forecasting and its very hard to control unless you know a priori via domain knowledge what is going on in your time series, see for example in this post the impact of last data point being outlier stats.stackexchange.com/questions/146098/… $\endgroup$ – forecaster Jan 20 at 20:39
  • $\begingroup$ The terms come from regression. E.g. see here stats.stackexchange.com/questions/65912/… - (a 'good' leverage point is one that would pull the line close to where the bulk of the data would suggest it go (improving precision); a 'bad' leverage point pulls it away from that) $\endgroup$ – Glen_b Jan 20 at 22:47