What are outliers and how do they affect statistical analysis?

What are outliers and how do they affect statistical analysis?

Outliers are data points that differ significantly from other observations. They can skew results and affect the validity of statistical analyses.

Can you give me an example of how an outlier might impact a mean calculation?

Sure! If you have the data set {2, 3, 4, 5, 100}, the mean is affected by the outlier 100, making it 22.8 instead of 3.6.

What methods can be used to handle outliers in data?

Common methods include removing outliers, transforming data, or using robust statistical techniques that are less sensitive to outliers.

Are there situations where outliers should be kept in the analysis?

Yes, outliers can provide valuable insights, especially if they represent valid extreme cases or anomalies worth investigating.