Outliers are data points that significantly differ from other observations in your dataset. In simpler terms, they are numbers that don't seem to fit with the rest. These outliers can skew the data's overall trend and affect statistical calculations, such as the mean and standard deviation. Identifying outliers is crucial for drawing more accurate conclusions from data.
There are various methods to detect outliers, but a common approach is the 1.5 x Interquartile Range (IQR) rule. By using this rule, you can determine if a number is too far from other data points:
- Calculate the bounds for potential outliers by using the IQR. The lower bound is given by subtracting 1.5 times the IQR from the first quartile (Q1), while the upper bound is found by adding 1.5 times the IQR to the third quartile (Q3).
- Any data point that lies outside these bounds (either below the lower bound or above the upper bound) is considered an outlier.
In our dataset, the number 12 is identified as an outlier because it falls below the calculated lower bound, emphasizing its unusual position relative to other numbers in the dataset.