Question

In: Statistics and Probability

by using an example, explain how standard deviation can be affected by removing outliers

by using an example, explain how standard deviation can be affected by removing outliers

Solutions

Expert Solution

The standard deviation is a measure of variability or dispersion of a data set about the mean value. An outlier in the data set will increase the standard deviation of the data set. The data set should be free from outliers for the least standard deviation.

Answer and Explanation:

The standard deviation of a distribution is defined as:

σ=√∑(xi−μ)2nσ=∑(xi−μ)2n

The standard deviation provides the deviation from the mean value of the distribution. If the data set consists outliers then the deviation from the mean will be high and it will cause the result of high standard deviation.

So to brief it out ... If we remove or eliminate the outliers(extreme values) from the data set ,the standard deviation of the data becomes considerably lower and the precesion of the data becomes more .

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Thank you :)


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