What is an Outlier? Definition and How to Find Outliers in Statistics

Here, we’ll discuss two algorithms commonly used to identify outliers, but there are many more that may be more or less useful to your analyses. You can read more about the different types of data visualizations in this article, but here are two that a data analyst could use in order to easily find outliers. If a data value is an outlier, but not a strong outlier, then we say that the value is a weak outlier. If we do identify them it’s important to attempt to identify why they may have occurred. When outliers exist in our data, it can affect the typical measures that we use to describe it. The Q1 is the value in the middle of the first half of your dataset, excluding the median.

  • Even a slight difference in the fatness of the tails can make a large difference in the expected number of extreme values.
  • Use the given data and outlier formula to identify potential outliers.
  • An outlier is a value or point that differs substantially from the rest of the data.
  • The following video gives an introduction to the idea of an outlier in a set of data.

We won’t go into detail here, but essentially, you run the appropriate significance test in order to find the p-value. Computing a z-score helps describe any data point by placing it in relation to the standard deviation and mean of the whole group of data points. Positive standard scores appear as raw scores above the mean, whereas negative standard scores appear below the mean. The mean is 0 and standard deviation is 1, creating a normal distribution. When using statistical indicators we typically define outliers in reference to the data we are using. We define a measurement for the “center” of the data and then determine how far away a point needs to be to be considered an outlier.

State of the art in outlier detection

Some of the software below uses different approaches to calculating quartiles than what we used in the examples above. The difference in the calculations won’t be enough to alter your results significantly. To find Q1, you need to take the average of the 2nd and 3rd values of the data set. To find Q3, you need to take the average of the 6th and 7th values. A value is suspected to be a potential outlier if it is less than (1.5)(IQR) below the first quartile or more than (1.5)(IQR) above the third quartile. First of all, let’s see how easily and quickly the teachers would find the results if they used Omni’s outlier calculator.

Z-score measures how many standard deviations a data point is from the mean, and a value above a certain threshold, such as 2 or 3, may be considered an outlier. A box plot shows the distribution of a variable and identifies outliers as points that fall outside the whiskers, representing a certain range of the distribution. Univariate outliers can be handled in various ways, such as removing them from the moving expenses dataset, replacing them with a more representative value, or transforming the data to reduce the impact of the outliers. The appropriate approach depends on the nature of the data and the goals of the analysis. Outliers can significantly impact statistical analysis, such as affecting the mean and standard deviation of the data. Therefore, it is important to identify and address outliers in a dataset.

  • In this article you learned how to find the interquartile range in a dataset and in that way calculate any outliers.
  • Some of the software below uses different approaches to calculating quartiles than what we used in the examples above.
  • Two potential sources are missing data and errors in data entry or recording.
  • Visualizing data as a box plot makes it very easy to spot outliers.

Now, what would you say if we told you that this was the last bit of theory in this article? We’ve learned the meaning of outliers, so it’s time to use it in an example. However, to calculate the quartiles, we need to know the minimum, maximum, and median, so in fact, we need all of them.

Multivariate Outliers

It’s a tricky procedure because it’s often impossible to tell the two types apart for sure. Deleting true outliers may lead to a biased dataset and an inaccurate conclusion. If you have a small dataset, you may also want to retain as much data as possible to make sure you have enough statistical power.

Reasons for Identifying Outliers

In practice, it can be difficult to tell different types of outliers apart. While you can use calculations and statistical methods to detect outliers, classifying them as true or false is usually a subjective process. A physical apparatus for taking measurements may have suffered a transient malfunction. There may have been an error in data transmission or transcription. Outliers arise due to changes in system behaviour, fraudulent behaviour, human error, instrument error or simply through natural deviations in populations.

Finding the outliers that matter

An outlier is an observation that lies outside the overall pattern of a distribution (Moore and McCabe 1999). Usually, the presence of an outlier indicates some sort of problem. This can be a case which does not fit the model under study, or an error in measurement. In a real-world example, the average height of a giraffe is about 16 feet tall.

Example: using the outlier calculator

In it, we see variable fields where we input the entries one by one. Note how initially the calculator shows only eight fields, but new ones appear whenever you seem to reach the limit (in fact, you can enter up to thirty numbers). In short, the five-number summary gives us a rough idea of how “scattered” the dataset is. For instance, it can tell you whether the middle value is far from halfway between the smallest and largest values.

In this article, we’ll learn the definition of definite integrals, how to evaluate definite integrals, and practice with some examples. Here is an overview of set operations, what they are, properties, examples, and exercises. For example, say your data consists of the following values (15, 21, 25, 29, 32, 33, 40, 41, 49, 72).

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