Detecting Influential observations in Two-Parameter Liu-Ridge Estimator

Influential observations do posed a major threat on the performance of regression model. Different influential statistics including Cook’s Distance and DFFITS have been introduced in literatures using Ordinary Least Squares (OLS). The efficiency these measures will be affected with presence multicollinearity linear regression. However, both problems can jointly exist New diagnostic based Two-Parameter Liu-Ridge Estimator (TPE) defined by Ozkale Kaciranlar (2007) was proposed as alternatives to existing ones. Approximate deletion formulas for detection cases TPE are proposed. Finally, illustrated two real life dataset.