After Olive and Grandpa finish practicing her (risqué, we learn) routine one night (their growling at each other pushed audiences to giggles) he tucks her into bed. But she has some questions for him that have been on her mind...
FROM THE SCRIPT:
Olive:
"Grandpa...?"
Grandpa:
"Uh-huh?"
He sits back down. Olive opens her mouth, hesitates. Then suddenly -- unexpectedly -- she is upset.
Finally, she turns back and in a tiny voice:
Olive:
"I don't want to be a loser."
Grandpa:
"You're not a loser Olive! Why do you say that?!"
Olive:
"Because! Dad hates losers. That's what he said!"
Grandpa:
"But you're not a loser! And your dad would never hate you, ever!"
Olive:
"But what if I lose tomorrow?"
She's on the verge of tears.
Grandpa:
"Whoa, whoa, back up a sec. You can't lose. You know why? A real loser is someone so afraid of not winning they don't even try. That's not you! you're gonna dance, right?! So even if you win, or you don't win, you've already won! See? you see? You-see-you-see-you-see?"
He tickles her. She squeals.
(And another classic line from the conversation):
Grandpa:
"I'm madly in love with you and it's not because of your brains or your personality."
Apparently it was what she needed to hear.

I really love this scene,(and think this is the one that helped get those Oscar noms for Alan A and Abby). I'm so glad Alan Arkin won - I've been a fan since, "The Heart Is A Lonely Hunter"!!!!!!!!