- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 7. Big Data Projects
- Subject 2. Data Preparation and Wrangling
CFA Practice Question
One method to handle outliers is:
B. winsorization
C. standardization
A. normalization
B. winsorization
C. standardization
Correct Answer: B
Winsorization is the transformation of statistics by limiting extreme values in the statistical data to reduce the effect of possibly spurious outliers.
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