Unveiling Secrets: The Power of Outliers
People believe that you should ignore outliers.
But, that may not be the best thing to do in planning.
Outliers in historical data tell us about potential shifts in demand patterns. Or emerging trends.
Investigate them and consider their impact on future forecasts.
Don’t ignore outliers.
Don’t Ignore Outliers!
It’s like finding hidden clues that can help us understand exciting new things.
Imagine you’re playing your favourite game, and you always get scores between 5 and 10 points. But suddenly, you get a really high score of 20!
That’s an “outlier” – something unusual that stands out!
In real life, we have outliers too, like in our school grades or even in the weather. And guess what? They can tell us amazing secrets!
A famous ice cream shop sells many ice creams every day, but one day, they sell ten times more!
That’s an outlier in their sales data!
Instead of ignoring it, they investigated and found out there was a big event nearby, so more people came to enjoy ice cream! 🎉
By paying attention to outliers, we can spot exciting changes and new trends! It’s like discovering a treasure map that leads to awesome surprises!
The next time you see something unusual in your data or scores, remember to investigate. It might lead you to exciting new possibilities and help you plan for the future.