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mediumData Analyst interview question

How do you decide what to do with outliers in your data?

What the interviewer wants to hear

  • Finds outliers with plots and rules like IQR or z-scores
  • Investigates whether they are errors or real events
  • Fixes or removes errors; keeps real extreme values
  • Uses robust measures like median or capping when needed
  • Reports results with and without them

Model answer

I never remove outliers automatically. First I find them, using a box plot or histogram and a simple rule like 1.5 times the IQR. Then I investigate: is a 500,000 AED order a typing error, a test transaction, or a real corporate customer? Errors get fixed or removed, and I note how many. Real extreme values usually stay, because they can matter a lot to the business, for example a few big clients driving much of revenue. If they distort a summary, I switch to robust measures such as the median, or cap values at a high percentile for modelling. For important conclusions I run a quick sensitivity check: show the result with and without the outliers. If the conclusion flips, that is something the stakeholder must know rather than a detail I hide.

Can you answer it under time pressure?

Take a timed medium round and get scored on every answer.

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