@fbgeoff wrote:
Is the presence of outliers a good enough reason to warrant a transformation? Some variables are normally distributed but have outliers. In this case, will it still be necessary to transform the variable?
The answer is: it depends!
If you want your analysis to be less sensitive to outliers, then you take some action to reduce the effect of outliers — while transformation is one way to reduce the effect of outliers, it also changes the distribution of the data (which you may or may not want). A better way to reduce the effect of outliers is to run a "robust" analysis on the untransformed data, if such a "robust" analysis exists.
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