Accounting Dictionary


When variables are plotted on a graph, it is common for the values to cluster together. When you have one dot that it all by itself far, far from the other data points, we called that an outlier.

On a scatter graph plotting the interest rates being paid by various bonds, the data points all clustered together. One dot showed an interest rate far above the others. This dot represented a company that was tottering on bankruptcy. It was an outlier, paying much higher interest to compensate for the increased risk.

Sign Up to Learn More!

Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!

Scroll to Top