WHAT ARE THE DIFFERENT

APPROACHES TO DEAL WITH

OUTLIERS?

www.benchmarksixsigma.com
 MEANING

Outlier is a data point or

observation located far from the
rest of the data points. Outliers
may be an outcome of
measurement variability or an
experimental error.

www.benchmarksixsigma.com
All outliers must be investigated
and corrected (usually removed
from the data set), as outliers can
lead to incorrect statistical
analysis. Outlier Management is
the science of investigating and
applying a suitable treatment to
the outliers in the data.

www.benchmarksixsigma.com
 REASON
FOR OUTLIERS:

The error may be due to Data

Entry, Recording, Measurement in
Gage, Measurement due to
Operator, Measurement error due
to calibration, Sampling Errors, or
Data Processing Errors.
Outliers may be present in the
data due to Bulk orders, Reseller's
Extra Loyal Customers, etc.

www.benchmarksixsigma.com
 STRATEGY TO
DEAL WITH OUTLIERS:

Keep the outlier and carry out

the test with the outliers.
Segment the data and carry
out a deeper analysis.
Imputing outliers and treating
them separately.

www.benchmarksixsigma.com
Set up a filter to do the test
without the outliers. Since
outliers hide significant
effects, it may be appropriate
to set up a filter to examine
the results without the
outliers.

www.benchmarksixsigma.com
Delete the outlier - The
outliers may be deleted if
there is an error in data or the
reason for the outlier is not
likely to happen again.
Delete the outlier after post-
test analysis.

www.benchmarksixsigma.com
Change the value of the outlier.
This may be done by replacing it
with a more appropriate value,
such as the mean or the median.
Consider the underlying.
distribution. An Anderson Darlings
or Shapiro Wilk Test may be done
to check the normality of the data.

www.benchmarksixsigma.com
Carry out a Non-Parametric Test
in case the underlying
distribution is not Normal.
Transform the Data. Data can be
transformed using the Box-Cox
Transformation, Johnson
Transformation, log
transformations, scaling, cube
root normalization, etc.

www.benchmarksixsigma.com
 INQUIRE NOW!

Learn more about Outliers in our

Green Belt and Black Belt
programs.

+91 98113 70943

www.benchmarksixsigma.com

https://tinyurl.com/BSSinquire