Question- One indicator of an outlier is that an observation is more than 2.5 standard deviations from the mean. Consider the data value 80.
(a) If a data set has mean 70 and standard deviation 5, is 80 a suspect outlier?
(b) If a data set has mean 70 and standard deviation 3, is 80 a suspect outlier?
Answer: (a) Since 80 is fewer than 2.5 standard deviations from the mean, the answer is No.
(b) Since 80 is more than 2.5 standard deviations above the mean, the answer is yes.
A measurement of a data's dispersion from the mean is known as standard deviation. The data are said to be clustered around the mean when the standard deviation is low and more dispersed when the standard deviation is high.
Because it can aid in the comprehension of measurements when the data is scattered, standard deviation is significant. The data's standard deviation will increase in proportion to how widely distributed the data are.
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