Answer to Question #99912 in Statistics and Probability for Maureen

Question

Specify a large population that you might want to study and describe the type numeric measurement that you will collect (examples: a count of things, the height of people, a score on a survey, the weight of something). What would you do if you found a couple outliers in a sample of size 100? What would you do if you found two values that were twice as big as the next highest value?

Answer 1

Suppose we are studying about the annual income of the person. So, this will be a quantitative data. Now we took 100 samples of income from these data and arrange them in an order.

After arranging them in order, we find that two of these incomes are very high with respect to others, say that these were twice as big as the next highest value.

Now, including this data in our analysis will alter the result of our analysis such as average and the standard deviation.

So, there are two options to deal with this kind of data.

i) Remove those data which seems as outliers.

ii) Replace those data with the average value of remaining data.