Machine learning seeks to understand behavior by revealing patterns in data. Anomaly detection is an ML process used to identify unusual data points or patterns in a dataset. Outliers are values that differ from other data points, and they can be categorized into three broad categories: global outliers, contextual outliers, and collective outliers. Anomaly detection algorithms, such as Local Outlier Factor (LOF) and Isolation Forest (iForest), can help prevent worst-case scenarios by quickly identifying unusual data points or patterns in a dataset. LOF uses a density-based approach to identify anomalies, while iForest builds an ensemble of isolation trees to capture diverse patterns in the data. Both algorithms have their benefits and drawbacks, and they require careful tuning of parameters to achieve optimal performance. Anomaly detection is essential for improving model performance, identifying patterns, and trends that may not be immediately apparent, particularly in economic data.