WINSORIZATION AND ITS APPLICATION
Faculty
Department
Year of Publication
Keyword
upload
Publication Type
Abstract
This study investigates the effectiveness of Winsorization, a statistical technique used to handle outliers in data analysis. Outliers can significantly distort statistical measures such as the mean, variance, and standard deviation, leading to inaccurate conclusions and decision-making. The research applied Winsorization to three different datasets representing employee income, monthly product sales, and customer complaints to assess its impact on mitigating the effects of outliers. In each case, extreme values were adjusted to a more reasonable range, resulting in more reliable statistical results and better representation of the underlying data distribution. The analysis demonstrated that Winsorization effectively reduced the influence of outliers on central tendency and variability measures, making the data more representative of the majority. The study highlights the importance of data cleaning techniques like Winsorization in business contexts, ensuring more accurate analysis and informed decision-making. The findings also suggest that further research is needed to explore optimal levels of Winsorization and its application in larger, more complex datasets. This research contributes to the understanding of how data preprocessing can improve the integrity of statistical analyses in various business environments.
Supervisor(s)
co-supervisor


