In short
Identifying data points that are unusually far from the rest — sometimes genuine signal (a fraud case), sometimes an error (a data entry typo) — and knowing which is which changes what you should do about them.
How to learn this
- 1Use a boxplot to visually spot outliers in a sample dataset.
- 2Learn the IQR (interquartile range) method for flagging outliers systematically.
- 3Practice deciding, case by case, whether to remove, cap, or investigate an outlier.
More topics at this stop
Stuck on this topic? Ask an Insider
Get 1:1 guidance from people who've walked this exact path — on the InsideEdge app.
