The 1.5 x IQR Rule: A common mathematical threshold for identifying outliers involves calculating the 'fences' of the data. Any value falling outside these boundaries is flagged as a potential outlier.
Lower Fence: Calculated as . Values smaller than this are considered low outliers.
Upper Fence: Calculated as . Values larger than this are considered high outliers.
Visual Inspection: Using tools like Box Plots or Scatter Diagrams allows for a quick identification of points that sit far from the whiskers or the general trend line.
| Feature | Erroneous Outlier | Natural Outlier |
|---|---|---|
| Source | Human error or equipment failure | Genuine rare event |
| Action | Remove or correct the data point | Retain and investigate its cause |
| Impact | Distorts the truth of the sample | Represents the true range of the population |
Check the Context: Always ask if the value is physically possible. For instance, a negative height or a test score of 150% is likely an error that should be excluded.
Justify Your Decision: In exams, if you are asked whether to keep an outlier, provide a logical reason. State whether it is a 'genuine extreme' or a 'likely error' based on the scenario provided.
Recalculate and Compare: A common exam task is to calculate the mean with and without the outlier. This demonstrates your understanding of how sensitive the mean is to extreme values.
Verify the IQR: Ensure you calculate the quartiles correctly before applying the rule. A small error in or will lead to incorrect outlier boundaries.