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What is the correct approach to outliers?

  1. A Determine whether each is a genuine extreme value or a data error before acting
  2. B Always remove them
  3. C Always keep them
  4. D Replace them with the mean
Answer

Determine whether each is a genuine extreme value or a data error before acting

Removing real high-value customers because they are statistically unusual discards the most valuable part of the data.

All Data MCQs

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