What are some real-world applications of outlier detection?

What are some real-world applications of outlier detection?

Outlier detection is used in various fields such as finance for fraud detection, healthcare for anomaly detection in patient data, and manufacturing for quality control.

Can you give me an example of how it's used in finance?

In finance, outlier detection helps identify fraudulent transactions by flagging unusual spending patterns that deviate from a user's normal behavior.

What about in healthcare?

In healthcare, outlier detection can identify abnormal test results or patient data that may indicate a serious health issue, allowing for timely intervention.

Are there any challenges associated with outlier detection?

Yes, challenges include distinguishing between true outliers and normal variations, as well as the need for large datasets to improve accuracy.