Question

In: Statistics and Probability

How many standard deviations away from the mean do you think a data value needs to...

How many standard deviations away from the mean do you think a data value needs to be in ordered to be considered an outlier (unusual) and discuss your reasoning for your choice.

Solutions

Expert Solution

If the data values falls outside of 3 standard deviations away from the mean, then those values are considered as an outliers

If the mean is represented by and Standard Deviation is represented by

then the values that are greater than + 3 and values that are less than - 3 are considered as outliers

Outliers is general are the most extreme values which are very far away from the Mean

In a normal distribution, there will be 99.7% of values that are within 3 standard deviations away from the mean, so only 0.3% of the values will be considered as outliers if there exists any since they are very far from the mean and increase the standard deviation too


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