Question

The mean monthly rent of students at Oxnard University is $890 with a standard deviation of $206. John’s rent is $1,395.What would the rent have to be to be considered as an outlier?

Answer 1

John's rent $1,395 itself is an Outlier

Explanation:

To calculate the outlier with mean and standard deviation.

Get the difference between value and the mean

Now, divide the result with standard deviation the result needs to be compared with Gaussian population.

Grubb's Test Formula:

`Z=|Value-Mean|/SD`

5% of Gaussian population are greater than 1.96 standard deviations from the mean. Here, the outlier comes from the result which is greater than 1.96.

Hence, through Grubb’s method we can identify the outlier with mean and standard deviation when the sample population is not known.