How Outbound Links affect Page Rank

In my last post, I discussed that in certain cases outbound links prove beneficial for your website. You can have a look how they are beneficial and in what cases you must place outbound links in your website in my previous post. Now in this post we will have a look how Google calculate the Page Rank for a certain Page and what is the affect of the outbound links of a page on Page Rank of the page. No doubt, not all of us want a higher PR. Here are few SEO Tips of mine, which I learn from my SEO Experience that how you can earn good page rank from Google.
•Update your web page regularly. Now if you update your Web Pages regularly Google will give you 2 points out of the ten total points.
•Add new Web Pages regularly in your website. You will be getting 4 points from Google if you add regular new pages to your website.
•Google will award you with 7 points if you have good neighborhood with the ranked directories.
•Google will give you 8 out of ten points if you link to giant monster sites like Face book, Orkut, Digg, Now public, Stumble, Squidoo, Live etc.
•Google will award you with 9 out of ten points if your website has good and quality in bound links.
•Google will award you 5 out of ten points if your website does not contain any broken links.
• If you have considered all the above-mentioned points, Google will award you 10 out of 10 points.
Now you must consider these few things before starting your struggle for PR. Now what role out bound links play in your PR and how Google ultimately calculate your PR is here. Suppose you got a page, “A” and you want to calculate the PR of page “A”. Now the PR of the page “A” calculated as
PR (A) = (1-D) +D (PRP1/O+PRP2/O+PRP3/O+…...+PRPN/O)
Do not get confused let me explain this formula. Here D stands for the dumping factor which the original PR and diluted on the bases of links coming from the other websites. It has value of 0.85 in most of the algorithms. PRP1 to PRPN is the Page rank of all the pages to which your web page is linking and O stands for number of outbound links of each page. In more simple words, we can define it as
“A” page's Page Rank = 0.15 + 0.85 * (a "share" of the Page Rank of every page that links to it)
Share= PR of the page divided by the number of outgoing links

Now from this equation we came to find out the relationship of outbound links to your PR. If the page linking to you has numerous out going links it can harm your PR. In my last article, I told you not give an outbound links to link farms and Spam sites. Now here it shows how these spam sites can harm your PR. Suppose you exchange a link with a website having PR 6 and number of outbound links are equal to 500 and on the other hand you exchange a link with a website having PR 3 but number of outbound links are only 50 or below 50. According to my SEO Experience, I will suggest you link with the site having PR 3 with 50 outbound links. There are many things, which can play a role in breaching Page rank of your page, and they are.
• Dirty Inbound Links like links form poker, porn and adult websites
• Link Spamming
• Duplicate or copied content
• Broken Links
• Black Hat SEO Techniques
By following these SEO Tips, you can surely achieve a good PR and you can easily analyze what role played by outbound links in PR