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214 Part IV: Quality Assurance25% 25% 25%Quartiles Q 1 Q 2Q 325%Percentiles 25th 50th 75thFigure 18.7 Quartiles and percentiles.quartiles are sometimes also known as the lower, middle, and upper quartilesrespectively. Also note that the second quartile is the same as the median. Todetermine the values of the different quartiles, one just has to find the 25th, 50th,and 75th percentiles (see Figure 18.7).Interquartile RangeOften we are more interested in finding information about the middle 50 percent ofa population. A measure of dispersion relative to the middle 50 percent of the populationor sample data is known as the interquartile range. This range is obtained bytrimming 25 percent of the values from the bottom and 25 percent from the top.Interquartile range (IQR) is defined asIQR = Q 3 – Q 1 (18.12)Notes:1. The interquartile range gives the range of variation among the middle 50percent of the population.Part IV.A.3EXAMPLE 18.14Find the interquartile range for the salary data in example 18.13:Salaries: 48, 51, 51, 52, 54, 55, 58, 62, 63, 69, 72, 73, 76, 85, 95Solution:In order to find the interquartile range we need to find the quartiles Q 1 and Q 3 or equivalentlythe 25th percentile and the 75th percentile. We can easily see that the ranks of25th and 75th percentiles are:Rank of 25th percentile = 25/100(15 + 1) = 4Rank of 75th percentile = 75/100(15 + 1) = 12Thus, in this case, Q 1 = 52 and Q 3 = 73.This means that the middle 50 percent of the engineers earn between $52,000 and$73,000. The interquartile range in this example isIQR = $73,000 – $52,000 = $21,000
Chapter 18: A. Basic Statistics and Applications 2152. The interquartile range is potentially a more meaningful measure ofdispersion than range, since it is not affected by the extreme values thatmay be present in the data. By trimming 25 percent of the data from thebottom and 25 percent from the top we eliminate the extreme values thatmay be present in the data set. Very often, interquartile range is used asa measure for comparing two or more data sets from similar studies.4. GRAPHICAL DISPLAYSDefine, interpret, and distinguish betweengraphical displays, such as histograms,scatter diagrams, tally sheets, bar charts,etc., and apply them in various situations.(Application)Body of Knowledge IV.A.4In this section we start our discussion of graphical displays by considering animportant tool called the frequency distribution table. The frequency distributiontable constitutes the first step toward displaying data graphically.Frequency Distribution TableGraphical methods allow us to visually observe characteristics of the data, aswell as to summarize pertinent information contained in the data. The frequencydistribution table is a powerful tool that helps summarize both quantitative andqualitative data, enabling us to prepare the additional types of graphics that arediscussed in this section.Qualitative DataA frequency distribution table for qualitative data consists of two or more categoriesalong with the data points that belong to each category. The number of datapoints that belong to any particular category is called the frequency of that category.For illustration let us consider the following example.Part IV.A.4EXAMPLE 18.15Consider a random sample of 110 small to mid-size companies located in the Midwesternregion of the United States, and classify them according to their annual revenues (inmillions of dollars).Continued
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214 Part IV: Quality Assurance
25% 25% 25%
Quartiles Q 1 Q 2
Q 3
25%
Percentiles 25th 50th 75th
Figure 18.7 Quartiles and percentiles.
quartiles are sometimes also known as the lower, middle, and upper quartiles
respectively. Also note that the second quartile is the same as the median. To
determine the values of the different quartiles, one just has to find the 25th, 50th,
and 75th percentiles (see Figure 18.7).
Interquartile Range
Often we are more interested in finding information about the middle 50 percent of
a population. A measure of dispersion relative to the middle 50 percent of the population
or sample data is known as the interquartile range. This range is obtained by
trimming 25 percent of the values from the bottom and 25 percent from the top.
Interquartile range (IQR) is defined as
IQR = Q 3 – Q 1 (18.12)
Notes:
1. The interquartile range gives the range of variation among the middle 50
percent of the population.
Part IV.A.3
EXAMPLE 18.14
Find the interquartile range for the salary data in example 18.13:
Salaries: 48, 51, 51, 52, 54, 55, 58, 62, 63, 69, 72, 73, 76, 85, 95
Solution:
In order to find the interquartile range we need to find the quartiles Q 1 and Q 3 or equivalently
the 25th percentile and the 75th percentile. We can easily see that the ranks of
25th and 75th percentiles are:
Rank of 25th percentile = 25/100(15 + 1) = 4
Rank of 75th percentile = 75/100(15 + 1) = 12
Thus, in this case, Q 1 = 52 and Q 3 = 73.
This means that the middle 50 percent of the engineers earn between $52,000 and
$73,000. The interquartile range in this example is
IQR = $73,000 – $52,000 = $21,000