Identifying local influential observations in Liu estimator

Abstract

Identifying influential observations is an important step in the right direction of the linear regression model building process. Various influence measures based on different motivational arguments are designed to measure the influence of observations through different aspects of various regression models. This paper is on the result of the research studies on the local influence of minor perturbation on the Liu estimator in linear regression model. The diagnostics under the perturbations of constant variance, individual explanatory variables and assessing the influence on the selection of Liu estimator biasing parameter are derived for Liu estimator. Two real data sets are employed to illustrate our methodologies.