What is difference between Outlier and Influential observation?

outliers
analytics

#1

Can please help me to understand the difference between Outlier and Influential observation? Do we go with same methodology to deal with Outlier and Influential observation?

Thx


#2

Hi,

Outliers are the data points those diverge by good margin from the overall pattern. It can have an extreme X or Y values or both compared to other values.

Influential point is an outlier that impacts the slope of the regression line. To test the influence of an outlier is to compute the regression equation with and without the outlier.

Regards,
Rahul


#3

outliers are badly influenced on the regression line.
influenced observations are helps form the strong regression line.