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A value is suspected to be a potential outlier when it falls outside which pair of limits?
ABelow the median or above the third quartile
BBelow or above the mean by one whole IQR
CBelow the mean or above 1.5 times the mean
DBelow Q1 - 1.5(IQR) or above Q3 + 1.5(IQR)
Answer & Solution
Correct answer: D. Below Q1 - 1.5(IQR) or above Q3 + 1.5(IQR)
1. The interquartile range measures how spread out the middle half of the data is.
2. A fence is placed one and a half interquartile ranges below the first quartile and the same distance above the third.
3. Any value outside Q1 - 1.5(IQR) or Q3 + 1.5(IQR) is a potential outlier that needs further investigation.
4. Anything above the third quartile would flag a full quarter of every data set, so that test is far too loose.
_Source: OpenStax Introductory Business Statistics (CC BY 4.0), Ch 2 "Descriptive Statistics", section 2.2 Measures of the Location of the Data_
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