If you have a dataset with 50 observations and 10 independent variables, any observation with a leverage greater than ____ could be considered potentially influential.

A. 0.5
B. 0.66
C. 1

Correct Answer: B

If leverage is greater than 3(k + 1)/n, where k is the number of independent variables, then the observation is potentially influential. 3 x (10 + 1)/50 = 0.66.