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An ordered data set has first quartile 42 and third quartile 58. Above what value is an observation suspected of being a potential outlier?
A82
B74
C90
D66
Answer & Solution
Correct answer: A. 82
1. First find the interquartile range: IQR = 58 - 42 = 16.
2. The upper fence sits 1.5 IQRs above the third quartile.
3. Compute 1.5 x 16 = 24, then add it to 58.
4. The fence is 58 + 24 = 82, so values above 82 are suspected potential outliers.
5. Option B, 74, adds only one IQR to the third quartile and skips the 1.5 multiplier.
_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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