What insights can be found by using leverage plots?

Question

I'm trying to figure out whether leverage plots can provide valuable information. See example here.

You should provide a reference to what leverage plots are. – Andy W Feb 13 '13 at 14:21 — Andy W, Feb 13 '13 at 14:21

score 3 · Answer 1 · answered Sep 05 '13 at 14:12

According to Sall (1990):

Leverage plots can show the point-by-point composition of the sum of squares for a hypothesis test.

Still according to the author:

They are valuable in revealing the degree of fit, the parameter estimates, the residuals, a measure of the variance of the fit, influential points, nonfitting points, nonlinearities and even collinearity

Reference:

Sall, J. (1990). Leverage Plots for General Linear Hypotheses. The American Statistician, 44(4), 308–315. doi:10.1080/00031305.1990.10475750

What insights can be found by using leverage plots?

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