“…Winsorization is a common statistic technique to deal with outliers, which replaces the extreme values with a prespecific value. The technique is applied in many fields, such as finance (Berg‐Jacobsen & Tran, 2021; Khan & Fahim,
2021), biometrics (Lan et al.,
2022; Li et al.,
2021), and psychology (Anderson et al.,
2022; Sales et al.,
2021), and is commonly incorporated the mainstream statistic software like SPSS, 2 STATA, 3 and scipy 4 package for Python. In this paper, we adopt this technique to formulate a winsorized BW maximization model as follows:
…”