Z-score vs IQR Method for Outlier Detection

𝗦𝗶𝗺𝗽𝗹𝗲 𝗠𝗲𝘁𝗵𝗼𝗱𝘀 𝗳𝗼𝗿 𝗢𝘂𝘁𝗹𝗶𝗲𝗿 𝗗𝗲𝘁𝗲𝗰𝘁𝗶𝗼𝗻: 𝗭-𝘀𝗰𝗼𝗿𝗲 𝘃𝘀 𝗜𝗤𝗥 Are you using the ±3σ rule to detect outliers? It works well, but there are some important considerations. Let’s break down some common methods. 1️⃣ Z-score Method / ±3σ rule The 3 sigma rule measures how far a value is from the mean in units of standard deviation: Z = (x−μ)/σ If |Z| > 3 → potential outlier. ✅ Works well when data is approximately normally distributed. If the data is skewed, it can affect the results. 2️⃣ IQR Method / Boxplot Rule The IQR method is based on quartiles: - Q1 (25th percentile) - Q3 (75th percentile) - IQR = Q3 − Q1. Outlier rule: x < Q1−1.5⋅IQR x > Q3+1.5⋅IQR ✅ It is more robust to skewness because it uses medians and percentiles instead of the mean. #DataScience #Statistics #Python #MachineLearning #OutlierDetection #DataAnalysis #Research

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