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What is an outlier in a dataset?

An outlier is an unusual or extreme data point that takes very small or very large values compared to the majority of the dataset. In a scatter plot, it appears as a point clearly separated from the main cluster of data points.

Conditions

  • Applies to any dataset with records, observations, samples, or data points.

Reasoning, step by step

  1. Observe the dataset or plot.
  2. Identify the main cluster of data points.
  3. Locate any point that lies far away from this cluster.
  4. Classify that isolated point as an outlier.

Example

In the student marks example, the scores are 15, 20, 25, 20, and 100. The score 100 is an outlier because it is extremely different from the other four scores.

Common misconceptions

  • Assuming outliers are always errors; they can be valid extreme observations.
  • Thinking outliers are only high values; they can also be unusually low values.

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