Abstract: Assessment local influence analysis in linear model with correlated errors is studied in this paper. The method is based on generalized Cook statistic
(Shi, 1997) with a suitable choice of M/c such that the local influence measure is invariant under parameterization. A perturbation scheme is introduced through covariance matrix. The local influence measures for the estimators of regression coefficients, variance coefficient and the best unbiased linear
prediction are derived. The results are compared with those of case-deletion, and a concrete example is used to illustration.

Key words: General linear model with correlated errors, Local influence, Perturbation scheme, Generalized Cook statistic