Learn how to recognize data outliers, points that deviate significantly from the norm, and their impact on data analysis and model building.
Question
Which of the following BEST defines a data outlier?
A. A datapoint that is significantly close to the trend line
B. A datapoint that has the highest significant number of observations
C. A datapoint that differs significantly from other observations
D. A datapoint that is above the trend line
Answer
C. A datapoint that differs significantly from other observations
Explanation
An outlier is an observation that lies an abnormal distance from other values in a random sample from a population. In a sense, this definition leaves it up to the analyst (or a consensus process) to decide what will be considered abnormal. Before abnormal observations can be singled out, it is necessary to characterize normal observations.
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