Learn Index · Data Management and Statistics Grade 11–12

Outliers

A value far from the rest of the data.

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Values that stand apart

An outlier is a value far from the rest of the data. Outliers may be:

  • Errors: a typo (a height of 1,750 cm instead of 175 cm), a broken sensor.
  • Genuine but unusual: a record-breaking performance, a billionaire’s income.

Each kind needs a different response.

Method 1: The IQR rule

  1. Find Q1, Q3 and the interquartile range (IQR = Q3 − Q1).
  2. Calculate the fences:
    • Lower fence: Q1 − 1.5 × IQR
    • Upper fence: Q3 + 1.5 × IQR
  3. Values outside the fences are outliers.

Example: 12, 14, 15, 15, 16, 17, 18, 19, 20, 45

  • Q1 = 15, Q3 = 19, IQR = 4
  • Fences: 15 − 6 = 9 and 19 + 6 = 25
  • 45 is an outlier.

On a box plot, outliers are shown as separate dots.

Method 2: z-scores

For roughly normal data, values with |z-score| > 3 (sometimes > 2) are unusual.

Example: Mean 60, σ = 5. A value of 78 has z = 3.6 → outlier.

Effects of outliers

Statistic Effect of an outlier
Mean pulled toward the outlier
Median barely affected (resistant)
Range greatly increased
IQR resistant
Standard deviation increased

Example: Salaries $40k, $42k, $45k, $47k, $500k

  • Mean = $134.8k; median = $45k. The median better represents a typical salary.

Outliers in scatter plots

In two-variable data, an outlier can be an influential point: it may pull a line of best fit and change the correlation a lot. Try the analysis with and without it.

What to do with outliers

  1. Check for errors. Fix or remove mistakes.
  2. Investigate. Is there a real reason?
  3. Report honestly. Don’t delete genuine data just because it’s inconvenient. You can report results with and without the outlier.
  4. Use resistant statistics (median, IQR) when outliers are present.

Worked examples

Example 1: Q1 = 20, Q3 = 30. Upper fence? 30 + 15 = 45.

Example 2: A class’s test scores have one 2% because a student was absent. Error or genuine? Probably not a real measure of learning; investigate before including.

Example 3: Which is better for house prices with a few mansions: mean or median? Median.

Common mistakes

  • Deleting outliers automatically.
  • Using the mean with skewed data.
  • Forgetting to recompute fences for the correct data set.

Try it yourself

  1. Data: 5, 6, 6, 7, 8, 8, 9, 30. Q1 = 6, Q3 = 8.5. Is 30 an outlier?
  2. Mean 100, σ = 15. Is 148 unusual by the |z| > 3 rule?
  3. Which measure of centre is resistant?
  4. Give one legitimate reason to remove an outlier.

Answers: 1) Yes: upper fence = 8.5 + 3.75 = 12.25. 2) Yes: z = 3.2. 3) the median 4) It’s a confirmed recording error.

Quick recap

  • An outlier is far from the rest of the data.
  • Detect with IQR fences or z-scores.
  • Outliers distort the mean; the median and IQR are resistant.