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Winsorization

An approach that caps extreme values at defined thresholds instead of removing them entirely.

Winsorization offers a controlled capping strategy for outlier handling instead of harsh deletion. For example, the lowest and highest percentile bands can be clipped to fixed thresholds to stabilize the data. This is especially useful in financial and operational data where it is not always clear whether extreme values are signal or noise. Winsorization provides a practical middle ground between aggressive intervention and doing nothing at all.