A random sample of sale prices of homes yielded the following summary information: $$\begin{array} { l l l }
\text { MIN } \$ 41,000 & 25 \% : \$ 82,000 & \text { Median: } \$ 124,000 \
\text { MAX } \$ 276,000 & 75 \% : \$ 169,000 &
\end{array}$$ Comment on a home that had a sale price of $429,000.
A) This value falls outside the upper fence and is considered an outlier.
B) This sale price would be expected since it falls inside the lower and upper fences.
C) This sale price falls between the lower and upper fences. It can be considered a potential outlier.
D) This value falls outside of the third quartile, but cannot be considered an outlier.

Question

A random sample of sale prices of homes yielded the following summary information: $$\begin{array} { l l l } 
\text { MIN } \$ 41,000 & 25 \% : \$ 82,000 & \text { Median: } \$ 124,000 \
\text { MAX } \$ 276,000 & 75 \% : \$ 169,000 &
\end{array}$$ Comment on a home that had a sale price of $429,000.
A) This value falls outside the upper fence and is considered an outlier.
B) This sale price would be expected since it falls inside the lower and upper fences.
C) This sale price falls between the lower and upper fences. It can be considered a potential outlier.
D) This value falls outside of the third quartile, but cannot be considered an outlier.

Quizplus · Accepted Answer

To determine if a value is an outlier, we calculate the interquartile range (IQR) and then the upper fence. IQR = Q3 - Q1 = $169,000 - $82,000 = $87,000. The upper fence = Q3 + 1.5(IQR) = $169,000 + 1.5($87,000) = $169,000 + $130,500 = $299,500. Since $429,000 is greater than the upper fence of $299,500, it is considered an outlier.

A Random Sample of Sale Prices of Homes Yielded the Following