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One indicator of an outlier is that an observation is more than 2.5 standard dev

ID: 3126654 • Letter: O

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?

No, since 80 is more than 2.5 standard deviations above the mean.

Yes, since 80 is more than 2.5 standard deviations above the mean.    

No, since 80 is less than 2.5 standard deviations above the mean.

Yes, since 80 is less than 2.5 standard deviations above the mean.


(b) If a data set has mean 70 and standard deviation 3, is 80 a suspect outlier?

No, since 80 is more than 2.5 standard deviations above the mean.

Yes, since 80 is more than 2.5 standard deviations above the mean.    

No, since 80 is less than 2.5 standard deviations above the mean.

Yes, since 80 is less than 2.5 standard deviations above the mean.

Explanation / Answer

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?

u + 2.5*sigma = 70 + 2.5*5 = 82.5.

Hence, as 80 is less than this,

OPTION C: No, since 80 is less than 2.5 standard deviations above the mean. [ANSWER]

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(b) If a data set has mean 70 and standard deviation 3, is 80 a suspect outlier?

u + 2.5*sigma = 70 + 2.5*3 = 77.5.

Hence, as 80 is greater than this,

OPTION B: Yes, since 80 is more than 2.5 standard deviations above the mean.

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