Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who may pay to be displayed in certain positions on certain pages, or may compensate us for referring users to their services. While our reviews and assessments of each product are independent and unbiased, the order in which brands are presented and the placement of offers may be impacted and some of the links on this page may be affiliate links from which we earn a commission. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
Inlier
3 key takeaways
Copy link to section- An inlier is a data point that lies within the expected range of values in a dataset and is consistent with the overall pattern of the data.
- Inliers are crucial for accurate statistical analysis and modeling, as they represent the normal variation within the data.
- Distinguishing between inliers and outliers helps in refining data quality and improving the reliability of analytical results.
What is an inlier?
Copy link to sectionAn inlier is a data point that is consistent with the majority of the observations in a dataset. It fits within the overall distribution and pattern of the data, indicating that it is a typical and expected value. Inliers are essential for constructing accurate statistical models, as they reflect the normal behavior of the dataset. The concept of inliers is often used in contrast to outliers, which are data points that differ significantly from other observations and may indicate errors, anomalies, or rare events.
Importance of identifying inliers
Copy link to sectionData Integrity: Identifying inliers ensures that the data being analyzed is representative of the typical behavior of the dataset, leading to more reliable and accurate results.
Statistical Analysis: Inliers contribute to the stability and robustness of statistical measures such as mean, median, and standard deviation, which are used to describe the central tendency and variability of the data.
Modeling: In machine learning and predictive modeling, distinguishing between inliers and outliers helps in building models that generalize well to new data, improving their predictive accuracy.
Quality Control: Inliers indicate that the data is consistent and free from significant errors or anomalies, which is important for quality control and decision-making processes.
Example of identifying inliers
Copy link to sectionExample: Analyzing Exam Scores
Consider a dataset of exam scores for a class of students. The scores range from 0 to 100, with most students scoring between 60 and 90. In this context, scores within the range of 60 to 90 are considered inliers, as they fall within the expected range of values.
- Dataset: [55, 60, 62, 65, 70, 75, 80, 82, 85, 88, 90, 95]
- Inliers: Scores between 60 and 90
- Outliers: Scores of 55 and 95, which are significantly lower and higher than the majority of the data points
By identifying inliers, analysts can focus on the typical performance of students, while outliers may require further investigation to understand the reasons behind the unusually high or low scores.
Challenges and considerations
Copy link to sectionBoundary Determination: Deciding the threshold for what constitutes an inlier versus an outlier can be subjective and depends on the context and the distribution of the data.
Data Distribution: The identification of inliers is influenced by the underlying distribution of the data. Different statistical techniques may be required for normally distributed data versus skewed or multi-modal distributions.
Impact of Outliers: While inliers are the focus for typical data analysis, understanding the impact of outliers is also important, as they can provide valuable insights into rare events or data quality issues.
Context-Specific: The definition of inliers and outliers can vary depending on the specific field or application, requiring domain knowledge to make accurate determinations.
Related topics
Copy link to section- Outlier detection
- Data cleansing
- Statistical modeling
- Data distribution
Explore these related topics to gain a deeper understanding of how data points are classified and analyzed in statistical and data science contexts, and how identifying inliers and outliers contributes to data integrity and analytical accuracy.
More definitions
Sources & references

Arti
AI Financial Assistant