Can outliers be useful in analysis?

Can outliers actually be useful in data analysis?

Yes, outliers can provide valuable insights. They may indicate variability in your data or highlight important trends.

What are some examples of how outliers can be beneficial?

For instance, in fraud detection, outliers can signal unusual transactions that warrant further investigation.

Are there situations where outliers should be ignored?

Absolutely. If outliers are due to measurement errors or are not relevant to your analysis, they might skew your results.

How do I identify outliers in my dataset?

You can use statistical methods like the Z-score or IQR method to identify outliers in your dataset.