Reading charts

One unusual point can change the picture

Investigate an unusual observation before excluding it.

The short answer

An outlier might reflect a real event, a measurement issue or a change of unit. Inspect the source and definition. If you present a result with the observation excluded, also give the inclusion rule and show how the result differs when it is retained.

A worked example

Illustrative data · No live market prices

Consider [10, 11, 50, 12]. The mean is 20.75, while the median is 11.5. The value 50 has a large effect on the mean and on the vertical range of the chart. This does not establish that it is wrong.

Your turn

Calculate the mean of the other three values: 11. Compare it with 20.75. Explain why a different summary is not permission to silently delete the observation.

What this does not tell you

An illustrative calculation does not explain causes or predict future results. Check the dates, units and missing observations before using the method elsewhere.

Related term

Outlier

Sources & review

Original Charts Haven example. All stated numbers are illustrative and allow you to repeat the calculation.

Editorial Policy · ONS

Next lesson: Look beyond the window