(1) standardized residuals with an absolute value greater than 3.29 (we can use 3 as an approximation) are cause for concern because in an average sample a value this high is unlikely to occur; (2) if more than 1% of our sample cases have standardized residuals with an absolute value greater than 2.58 (2.5 will do) there is evidence that the level of error within our model may be unacceptable; and (3) if more than 5% of cases have standardized residuals with an absolute value greater than 1.96 (2 for convenience) then the model may be a poor representation of the data.
