Intro to Business Statistics

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Interquartile range

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Intro to Business Statistics

Definition

The interquartile range (IQR) measures the spread of the middle 50% of a dataset. It is calculated as the difference between the third quartile (Q3) and the first quartile (Q1).

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5 Must Know Facts For Your Next Test

  1. The IQR is used to describe the variability within a dataset.
  2. It is not affected by outliers, making it a robust measure of spread.
  3. To find Q1 and Q3, you need to split your data into four equal parts after sorting it.
  4. IQR = Q3 - Q1.
  5. A larger IQR indicates greater dispersion in the middle 50% of the data.

Review Questions

  • How do you calculate the interquartile range (IQR)?
  • Why is the IQR considered a robust measure of spread?
  • What does a larger IQR indicate about a dataset?
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