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At 07:22 PM 5/27/99 , Kerry Dykes wrote:
>> The new TS2000i system report (using Rina Systems methodology) excludes
>> "outlier" trades that are greater than 3 standard deviations from the
>mean,
>> I believe. I'd say this new system report is one of the better features
>of
>> TS2000.
>This is like a retailer excluding the December trade when calculating
>profitability. For me the outliners are the profit. The rest is keeping my
>head above water until the next one.
>Andrew D.
There is only preference rather than some apriori logic when it comes to
outliers.
In your case, you are saying you need to have your shop open all year
around to so that you can catch the Christmas crowd recognition.
You are comfortable with that risk, that come a Christmas and with a
recession,
the crowd will still be there in sufficient numbers and purchasing power.
Someone else may prefer a market niche where he/she profits somes most
of the months and bumber sales weeks are "nice to have". For them they
got to outlier the bumper sales weeks. For you, a safety measure is to
check the consistency of getting a bumper period at all for a time window
(your cashflow window using the retail analogy).
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