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METHODS OF DETECTING AND TREATING OUTLIERS USED IN REPUBLIKA SRPSKA INSTITUTE OF STATISTICS ─ ABSTRACT ─ Darko Marinković Republika Srpska Institute of Statistics/Senior Officer for Sampling and Data Analysis Veljka Mlađenovića 12d, 78 000 Banja Luka, Bosnia and Herzegovina Phone: ++38751332724; Fax: ++38751332750 E-mail: [email protected] Aleksandra Đonlaga Republika Srpska Institute of Statistics/Senior Officer for Services Statistics Veljka Mlađenovića 12d, 78 000 Banja Luka, Bosnia and Herzegovina Phone: ++38751332718; Fax: ++38751332750 E-mail: [email protected] Non-sampling errors in surveys include all errors that can occur during data collection, data processing, estimation and analysis, except error that is related to the fact that a survey is conducted using probability sample. Having in mind number of possible sources of this types errors, it is not easy task to ensure a level of quality required by users and, at same time, to exploit available resources in most efficient manner and stay within predefined time/budget restrictions. To be able to respond to that challenge, process of production of official statistics must include systematic approach to prevention, identification and treatment of errors that are occurring in survey operations other than sampling. Outliers, as a potential non-sampling error, might have significant influence on estimates produced on domains of interest of the survey, and must be identified and treated in proper manner. They might include errors from one or more sources or, on the other hand, be a result of true change in the phenomenon which is subject of the survey. Proper distinction must be made between the two situations in order to avoid serious bias in survey estimates. That process include not only checking internal consistency of data (usually implemented within data entry/collection solution), but also checking external consistency, by comparing collected data at unit level with historical data on same/related surveys and possibly with available administrative sources. To be able to combine multiple data sources with survey data, there is a need for implementation of a method that is simple enough and, at same time, that can in efficient manner identify highly influential observations, which are potential non-sampling error. Also, in some situations the only solution for treatment of identified error is recontacting of the unit and this fact should be taken into account if we want to stay within time/budget restrictions. This means that identification and minimization of influence of outliers on survey estimates is one of major challenges for statisticians. Paper describes the main methods of identification and treatment of outliers, which are commonly used in long-term surveys conducted in Republika Srpska Institute of Statistics. An overview of the Hidiroglou-Berthelot ratio method is given, which is applied to detect outliers in Structural Business Statistics and Labour Cost Survey. Also, brief description of the implementation of the method is given.