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Outliers The percent of the observations that are classified as outliers by the 1.5IQRrule is the same in any normal distribution. what is this percent? show your method clearly.

Short Answer

Expert verified

There exists 4.30%of observations which are considered as outliers

Step by step solution

01

Step-1 Given Information

The percent of the observations that are classified as outliers by the rule =1.5IQR

02

Step-2 Explanation

In a standard Normal distribution, the first and third quartiles are 0.6745.forN(,).

The first and third quartiles of a N(,)distribution are defined as follows:

Q1=-0.6745AndQ3=+0.6745

IQR is defined as the interquartile range

localid="1649998096448" IQR=Q3-Q1=1.349

Hence, 1.5(IQR)=2.0235

The suspected outliers are below Q1-1.5(IQR)=-2.023or above Q1+1.5(IQR)=+2.023

Within the range of -2.0235to2.0235the proportion outside of this range is approximately equal to the area under the standard Normal distribution outside of this range.

The corresponding z-values to -2.0235to2.0235are0.2151.

This means that there are 2.151%of observations on the extreme left and right of the distribution.

localid="1649998118762" 2(0.02151)=0.043=4.30%

Hence, there exists 4.30%of observations are considered as outliers.

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