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How do you define an outlier in practice?

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Answer

  • No single definition — depends on the model and question.
  • Common rules: (1) Tukey: outside Q1 - 1.5·IQR or Q3 + 1.5·IQR.
  • (2) Z-score: |z| > 3 for approximately normal data.
  • (3) Modified z-score using MAD: |z| > 3.5 (more robust).
  • (4) Isolation Forest / DBSCAN for multivariate.
  • Never remove outliers blindly — investigate whether they're data errors, natural extremes, or a signal.
Check yourself — multiple choice
  • Anything > mean
  • Tukey IQR rule / |z|>3 / MAD z-score / Isolation Forest — depends on data + model; investigate before removing
  • Random threshold
  • Always remove

Outlier: multiple rules (IQR, z, MAD, iForest); investigate before removing.

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Practise Statistics Fundamentals

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