The interquartile range of a set of sale prices describes which of the following?
Correct Answer
A) The spread of the middle half of the observations
Why this is correct: As the original explanation states, the interquartile range (IQR) is the difference between the 75th percentile (Q3) and the 25th percentile (Q1). This range contains the middle 50% of the data, excluding the lowest and highest quarters. Why the other choices are wrong: The gap between the highest and lowest observation is the range, not the IQR. The average distance of each value from the mean is related to standard deviation, not IQR. The proportion of sales above the mean sale price is not measured by IQR. Exam tip: IQR focuses on the central data, making it resistant to outliers. Range is sensitive to extremes.
Why This Is the Correct Answer
Why this is correct: As the original explanation states, the interquartile range (IQR) is the difference between the 75th percentile (Q3) and the 25th percentile (Q1). This range contains the middle 50% of the data, excluding the lowest and highest quarters. Why the other choices are wrong: The gap between the highest and lowest observation is the range, not the IQR. The average distance of each value from the mean is related to standard deviation, not IQR. The proportion of sales above the mean sale price is not measured by IQR. Exam tip: IQR focuses on the central data, making it resistant to outliers. Range is sensitive to extremes.
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