Melanie Vida wrote:

For the analysis of financial data wih a large variance, what is the best way to select an outlier threshold?

Listed below, is there a best method to select an outlier threshold and how 
does R calculate it?

In R, how do you find the outlier threshold through an interquartile range?
In R, how do you find the outlier threshold using the hist command?
In R, how do you find the outlier threshold with Chebyshev Inequality?
In R, how do you find the outlier threshold with Kmeans?


Also, is there a better way to select an outlier threshold not listed above?


This depends on your definition of an outlier and the model for your data - there is no "best" method in general. The "robust" folks have quite a lot of theory and methods ...

Uwe Ligges


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