Z-Score Outlier Detection

Description: Outlier detection by Z-score is a statistical method used to identify data points that deviate significantly from the mean of a dataset. This approach is based on calculating the Z-score, which measures how many standard deviations a value is from the mean. An outlier is generally defined as one that has a Z-score greater than 3 or less than -3, indicating that it lies beyond three standard deviations from the mean. This method is particularly useful in datasets that follow a normal distribution, as it allows for the quick identification of observations that may be measurement errors or unusual phenomena. The Z-score is calculated by subtracting the mean of the dataset from a specific value and dividing the result by the standard deviation. This approach not only helps in cleaning the data but is also crucial in improving data quality for various analytical tasks, where the presence of outliers can negatively impact model performance. By removing or adjusting these values, the accuracy and robustness of the analysis can be improved, resulting in better predictions and insights.

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