Question
In data cleaning, which technique is most effective in
handling outliers in a dataset that could skew analysis?Solution
A logarithmic transformation is often applied to datasets with outliers, as it compresses the data range, bringing outliers closer to the central data values. This approach is particularly useful for highly skewed data, as it minimizes the impact of extreme values on the overall analysis. Unlike simply removing or replacing outliers, which might distort the data or lose valuable information, a logarithmic transformation allows for retaining all values while reducing the skewness and making the data more normal-like for statistical analysis. Log transformation is a powerful tool for handling outliers without compromising the integrity of the dataset. The other options are incorrect because: • Option 1 is inaccurate; removing outliers may lead to loss of information, especially if these values are genuine and insightful. • Option 2 can reduce variability but may distort data accuracy, particularly if the mean is not representative of most data. • Option 4 suggests ignoring outliers, which can misrepresent results as extreme values may influence key insights if left unaddressed. • Option 5 confuses duplicates with outliers, as duplicates do not represent extreme values and require a separate approach.
A listed company did not appoint a woman director on its Board. During audit, you find non-compliance continuing for 6 months. What is implication?
In insurance accounting, what is "unearned premium"?
A company has issued non-convertible debentures. Which of the following is true?
The term ‘Previous year’ is defined under which section of Income Tax Act?
Which of the following is not a member ministry in the National Board for MSMEs?
From the following data calculate abnormal gain to be debited to process account.
Input introduced in process 1 = 2000 units
Output = 1900...
Goods worth Rs.100,000 taken by the owner for his personal use should be credited to:
A supply comprising of two or more supplies shall be treated as the supply of that particular supply that attracts the highest rate of tax.
_______ are denominated in GBP (Great Britain Pound) and issued in London. Issue proceeds can be used to fund UK operation.
Section 126 of the Indian Contract Act refers to: