What Interquartile range is
The interquartile range (IQR) is a measure of spread in statistics. It is the difference between the third quartile (Q3) and the first quartile (Q1).
Steps for calculating Interquartile Range:
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Arrange the data in numerical order.
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Find the median, which is the middle number.
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Calculate the lower quartile (Q1) by taking the median of the lower half of the data.
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Calculate the upper quartile (Q3) by taking the median of the upper half of the data.
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Subtract the lower quartile (Q1) from the upper quartile (Q3) to get the interquartile range (IQR).
Examples
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Interquartile range is often used to identify outliers in a dataset. For example, a retailer may use the interquartile range to identify customers who are spending significantly more than the average customer.
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Interquartile range is also used to measure the spread of data. For example, a medical practitioner may use the interquartile range to measure the spread of a patient’s blood pressure readings over a period of time.
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Interquartile range can also be used to quickly identify large gaps between data points. For example, a financial analyst may use the interquartile range to quickly identify large discrepancies between stock prices.