While preparing an executive summary of last quarter's transaction totals for 150 retail locations, you notice the distribution is right-skewed because three flagship stores posted exceptionally high revenue. You plan to report the median as the measure of central tendency. To communicate spread in a way that, like the median, resists the influence of these outliers, which statistical measure/function should you calculate?
The interquartile range (IQR) summarizes the middle 50 % of values (Q3 − Q1), so extreme low or high observations have no direct impact on the result. Because the IQR is a robust measure of dispersion, it pairs well with the median when a data set is skewed or contains outliers. Standard deviation and variance incorporate every value and therefore inflate when extreme revenues are present, while the total range is dominated by the single highest and lowest figures and is even more sensitive to outliers.
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What does a right-skewed distribution mean?
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How is the Interquartile Range (IQR) calculated?
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Why is the median preferred over the mean in skewed datasets?
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Why is the interquartile range (IQR) a robust measure of spread?
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How does the IQR compare to standard deviation in handling outliers?
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When would you use the total range instead of the IQR?
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What is the Interquartile Range (IQR)?
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Why is the median preferred for skewed data?
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How does the Interquartile Range (IQR) differ from Total Range?
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CompTIA Data+ DA0-002 (V2)
Data Analysis
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