Bootstrap Confidence Intervals in Linear Models: Case of Outliers

Confidence interval estimations in linear models have been of large interest in social science. However, traditional approach of building confidence intervals has a set of assumption including dataset having no extreme outliers. In this study, we discuss presence of severe outliers in linear models and suggest bootstrap approach as an alternative way to construct confidence intervals. We conclude that bootstrap confidence intervals can outperform traditional confidence intervals in presence of outliers when sample size is small or population distribution is not normal. Lastly, we encourage researchers to run a computer simulation to evaluate conclusions of this study.