Outlier Detection Statistics Example 4

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Example 4

hard
A data set has mean xห‰=100\bar{x} = 100 and standard deviation s=15s = 15. Using the z-score method, determine whether the values 60, 145, and 155 are outliers (using the threshold โˆฃzโˆฃ>2|z| > 2).

Solution

  1. 1
    Step 1: Calculate z-scores: z60=60โˆ’10015=โˆ’2.67z_{60} = \frac{60-100}{15} = -2.67, z145=145โˆ’10015=3.0z_{145} = \frac{145-100}{15} = 3.0, z155=155โˆ’10015=3.67z_{155} = \frac{155-100}{15} = 3.67.
  2. 2
    Step 2: All three have โˆฃzโˆฃ>2|z| > 2: 60 (โˆฃzโˆฃ=2.67|z|=2.67), 145 (โˆฃzโˆฃ=3.0|z|=3.0), 155 (โˆฃzโˆฃ=3.67|z|=3.67). All three are outliers by the z-score criterion, with 155 being the most extreme.

Answer

All three values are outliers: z60=โˆ’2.67z_{60} = -2.67, z145=3.0z_{145} = 3.0, z155=3.67z_{155} = 3.67. All have โˆฃzโˆฃ>2|z| > 2.
The z-score method for outlier detection flags values more than a specified number of standard deviations from the mean. A threshold of โˆฃzโˆฃ>2|z| > 2 catches values in the outer 5% of a normal distribution, while โˆฃzโˆฃ>3|z| > 3 is more conservative (outer 0.3%). This method assumes approximately normal data.

About Outlier Detection

Outlier detection is the process of identifying data points that are unusually far from the rest of the dataset, using techniques like the IQR rule, z-scores, or visual inspection of box plots and scatter plots. These anomalous values may indicate measurement errors, data entry mistakes, or genuinely extreme observations.

Learn more about Outlier Detection โ†’

More Outlier Detection Examples