Winsorization is a way to minimize the influence of outliers in your data by either: Assigning the outlier a lower weight, Changing the value so that it is close to other values in the set.

When would you use Winsorization?

To winsorize data means to set extreme outliers equal to a specified percentile of the data. For example, a 90% winsorization sets all observations greater than the 95th percentile equal to the value at the 95th percentile and all observations less than the 5th percentile equal to the value at the 5th percentile.

What is the meaning of Winsorize?

What Is the Winsorized Mean? Winsorized mean is a method of averaging that initially replaces the smallest and largest values with the observations closest to them. This is done to limit the effect of outliers or abnormal extreme values, or outliers, on the calculation.