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Re: st: Dropping outliers


From   Maarten buis <[email protected]>
To   [email protected]
Subject   Re: st: Dropping outliers
Date   Sat, 9 Jun 2007 12:19:19 +0100 (BST)

--- Cinzia Rienzo <[email protected]> wrote:
> how do i  remove the top and bottom 1% tails of the wage distribution
> to remove outliers?

Dropping parts of your data just because they have uncommon values is
an extremeley bad idea. There has been a long thread on such ``mindless
data dullifiers'' this week starting with this post:
http://www.stata.com/statalist/archive/2007-06/msg00185.html

If you still want to do this I would at least not drop those cases but
create a variable (called touse) indicating which observations are to
be used in the analysis (value 1) and which are to be ignored (value
0). Than in your analysis commands you add -if touse-, like in the
example below.

*--------- begin example -------------
sysuse nlsw88, clear
sum wage, detail
gen touse = inrange(wage, `r(p1)', `r(p99)')
sum wage if touse
*---------- end example --------------

Hope this helps,
Maarten

-----------------------------------------
Maarten L. Buis
Department of Social Research Methodology
Vrije Universiteit Amsterdam
Boelelaan 1081
1081 HV Amsterdam
The Netherlands

visiting address:
Buitenveldertselaan 3 (Metropolitan), room Z434

+31 20 5986715

http://home.fsw.vu.nl/m.buis/
-----------------------------------------


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