Can outliers be useful in data analysis?

What are outliers in data analysis?

Outliers are data points that differ significantly from other observations. They can indicate variability or errors.

Can outliers actually be useful?

Yes, outliers can provide valuable insights, revealing trends, anomalies, or errors that need further investigation.

How do I identify outliers in my dataset?

You can identify outliers using statistical methods like Z-scores, IQR, or visualizations like box plots.

Should I remove outliers from my analysis?

It depends on the context. If they are errors, remove them; if they provide insights, consider keeping them.

What impact do outliers have on statistical analysis?

Outliers can skew results, affecting measures like mean and standard deviation, so it's crucial to analyze their impact.