Handle outliers with winsorization

Given is a basetable with two variables: "sum\_donations" and "donor\_id". "sum_donations can contain outliers when donors have donated exceptional amounts. Therefore, you want to winsorize this variable such that the 5% highest amounts are replaced by the upper 5% percentile value.

Print the minimum value of sum_donations and verify that it is at least 0. Then print the maximum value of sum_donations.
Fill out the appropriate lower limit percentile. As all values higher than 0 are realistic and occur often, it is not necessary to replace values lower than the lower limit percentile value.
Create a new variable "sum_donations_winsorized" that is a winsorized version of the "sum_donations" variable.
Print the maximum value of sum_donations_winsorized.

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Exercise

Handle outliers with winsorization

Instructions