Question

Does removing an outlier increase standard deviation?

Answer 1

Yes, If there are any outliers in the data set, the standard deviation will be large since the deviation from the mean will have increased. Therefore, if the outliers are eliminated, the standard deviation will be reduced, probably reflecting the true features of the population.

The impact on the standard deviation increases with the outlier's extremeness. Outliers make your data more variable, which reduces statistical power. Therefore, eliminating outliers can make your findings statistically significant. A removal of an outlier will have an impact on the mean. The standard deviation will decrease if the outlier was larger than the mean.

The standard deviation will increase if the outlier was less extreme than the mean. It's best to get rid of outliers only when there's a good cause to. Some outliers in your dataset represent normal population variance and ought to be left alone. They are referred to as real outliers.

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