Abstract:
Liu linear regression model building analysis is frequently applied for fitting model to near
mullicollinearity data sets. When atypical observations exist in a data set, they may exert
undue influence on the result of the analysis. This paper studies an assessment of the minor
perturbation of the Liu estimator in the ridge type linear regression model using Cook's
(1986) method to detect anomalous observations in the data set when mean squared error is
known or unknown, and perturbation of individual explanatory variable. Example based on
Longley data are used for illustration.
