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Outliers For the purposes of constructing modified boxplots as described in Section 3-3, outliers are defined as data values that are aboveQ3 by an amount greater than1.5IQR or below Q1by an amount greater than1.5IQR, where IQR is the interquartile range. Using this definition of outliers, find the probability that when a value is randomly selected from a normal distribution, it is an outlier.

Short Answer

Expert verified

The probability of a value being an outlier is equal to 0.0074.

Step by step solution

01

Given information

A value is randomly selected from a normal distribution. The probability of the value to be an outlier is to be computed.

02

Find the Interquartile Range

The interquartile range has the following expression:

IQR=Q3-Q1

The third quartileQ3 is the percentile; that is, 75% of all the values are less than the third quartile.

Thus, the expression for the third quartile in terms of the probability value is as follows:

P(Z<z)=0.75

From the standard normal table,the area of 0.75is observed corresponding to the row value of 0.6and column value of 0.07. Thus, thez-score is 0.67.

The first quartileQ1 is the percentile; that is, 25% of all the values are less than the first quartile.

Thus, the expression for the third quartile in terms of the probability value is as follows:

P(Z<z)=0.25

From the standard normal table,the area of 0.25is observed corresponding to the row value -0.6and column value 0.07. Thus,the z-score is -0.67.

The z-score for the IQR becomes:

IQR=z - scoreofQ3-z - scoreofQ1=0.67-(-0.67)=1.34

03

Calculate the upper limit and the lower limit separating the outliers

The upper limit is computed as follows:

UpperLimit=Q3+1.5IQR=0.67+1.51.34=2.68

This means that values above the z-score of 2.68 can be considered as outliers.

The lower limit is computed as follows:

LowerLimit=Q1-1.5IQR=-0.67-1.51.34=-2.68

This means that values below the z-score of -2.68 can be considered as outliers.

04

Find the probability of a value being an outlier

The probability that a randomly selected value is an outlier is computed below:

Poutlier=Pz<-2.68+Pz>2.68=Pz<-2.68+1-Pz<2.68=0.0037+1-0.9963=0.0074

Therefore, the probability of a value being an outlier is equal to 0.0074.

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