Anomaly detection with KNN

How do you know something is not right or it is far from the normal situation? Mathematically, if we can measure the distance between the new observation and the rest of the dataset (observed earlier), we can judge the closeness of this new data point to the historical dataset. In many applications, if we have fair confidence in the normality of the historical dataset, the low distance would show the normality of new observation. KNN is a simple way to measure the distance between each point and it's K neighbors.
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