Capping and Flooring outliers - Methods

[Pritish]

Hi,

I am trying to understand and find out what are the different techniques commonly used to Caps and floor outliers present in a dataset? Any guidance/research paper link is greatly appreciated?

[Ksharp]

Usually , you can define outliers as   if  >  mean+2*std  or  < mean-2*std

[Pritish]

Thanks! How do you treat those outlier? I don't want them to exclude from my dataset.

[M_Maldonado · Accepted solution]

Hi Pritish,

Take a look at the Replacement node in SAS Enterprise miner. It does not remove outliers the way the Filter node would.

By default the limit method is based on a standard deviation from the mean. Take a look at the flooring and capping that happens by default. There is also a brief example of how to use the replacement editor in the reference help (press F1 and go to the Replacement node under the Modify sections).

Good luck!

Miguel

[Ksharp]

I will Winsorted .  Replace them with 90th or 95th percentile .