Which of the following statement is TRUE?
A. Outliers should be identified and removed always from a dataset.
B. Outliers can never be present in the test set.
C. Outliers is a data point that is significantly close to other data points.
D. The nature of our business problem determines how outliers are used.
Answer:D
Which of the following statement is TRUE?
A. Outliers should be identified and removed always from a dataset. B. Outliers can never be present in the test set. C. Outliers is a data point that is significantly close to other data points. D. The nature of our business problem determines how outliers are used.
Explanation: The nature of a business problem often determines the use of outliers, e.g., in the case of problems where a class imbalance condition exists, like Credit Card Fraud detection, where the records for fraud class are very few with respect to no fraud class.