It is well known that transformation of the response may improve the homogeneity and the approximate normality of the errors. Unfortunately, the estimated transformation and related test statistic may be sensitive to the presence of one, or several, atypical observations. In addition, it is...

The article illustrates the use of the forward search to provide robust analyses of econometric data. The emphasis is on informative plots that reveal the inferential importance of each observation. The division of observations into “good” and “bad” leverage points is shown to be...