What are outliers in a dataset?

Outliers in a dataset are defined as values that significantly differ from other data points. They are often unusual observations that lie far from the central tendency of the data, such as the mean or median. The presence of outliers can indicate variability in the data or may suggest that there has been a measurement error or a peculiar occurrence affecting the data collection process.

Understanding outliers is crucial in data analysis, as they can have a significant impact on statistical measures, potentially skewing results and misrepresenting the underlying patterns in the data. Identifying and analyzing outliers can reveal important insights about the dataset, which can lead to improved decision-making or further investigation into the causes of these unusual values.