Learn how to recognize data outliers, points that deviate significantly from the norm, and their impact on data analysis and model building.
Table of Contents
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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