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What is the Formula for the Interquartile Range of a Histogram?

Published in Data Analysis Metrics 4 mins read

The exact formula for the Interquartile Range (IQR) is Q3 - Q1, where Q3 represents the third quartile and Q1 represents the first quartile. While a histogram visually represents data distribution, the IQR itself is a measure calculated from the underlying data set, describing the spread of the middle 50% of values.

Understanding the Interquartile Range (IQR)

The Interquartile Range (IQR) is a key measure of statistical dispersion, specifically defining the spread of the central portion of a data set. As highlighted in the provided reference, the IQR describes the middle 50% of values when ordered from lowest to highest. It is robust against outliers, making it a valuable tool for understanding data variability without being skewed by extreme values.

Components of the IQR Formula

To calculate the IQR, two essential components are required, derived from the ordered data:

  • First Quartile (Q1): This is the median (middle value) of the lower half of the data set. It marks the point below which 25% of the data falls.
  • Third Quartile (Q3): This is the median (middle value) of the upper half of the data set. It marks the point below which 75% of the data falls (or above which 25% of the data lies).

The reference explicitly states: "The IQR is the difference between Q3 and Q1." This forms the fundamental formula.

The Formula in Detail

The formula for the Interquartile Range is straightforward:

$$
\text{IQR} = \text{Q3} - \text{Q1}
$$

Where:

  • IQR = Interquartile Range
  • Q3 = Third Quartile (75th percentile)
  • Q1 = First Quartile (25th percentile)

How Histograms Relate to IQR Calculation

While a histogram visually summarizes the frequency distribution of a dataset, you don't directly apply the IQR formula to the histogram itself. Instead, you calculate the IQR from the raw numerical data that the histogram represents. A histogram helps you visualize where the data is concentrated, which can inform your understanding of where Q1 and Q3 might lie.

For instance, if you have a histogram showing the distribution of student test scores, you would use the actual list of scores to calculate Q1 and Q3, and then their difference for the IQR.

Steps to Calculate IQR from Data (Visualized by a Histogram)

Here's a general approach to finding the IQR for a dataset:

  1. Order the Data: Arrange all data points in ascending order from lowest to highest.
  2. Find the Median (Q2): Locate the middle value of the entire dataset. If there's an even number of data points, it's the average of the two middle values. This is the second quartile (Q2).
  3. Determine Q1: Find the median of the lower half of the data (all values below Q2, excluding Q2 itself if the dataset has an odd number of points).
  4. Determine Q3: Find the median of the upper half of the data (all values above Q2, excluding Q2 itself if the dataset has an odd number of points).
  5. Calculate IQR: Subtract Q1 from Q3 ($\text{IQR} = \text{Q3} - \text{Q1}$).

Example:
Consider a dataset: 1, 3, 5, 7, 9, 11, 13, 15, 17, 19

  1. Ordered Data: 1, 3, 5, 7, 9, 11, 13, 15, 17, 19
  2. Median (Q2): (9 + 11) / 2 = 10
  3. Lower Half: 1, 3, 5, 7, 9. Q1 = 5 (median of lower half)
  4. Upper Half: 11, 13, 15, 17, 19. Q3 = 15 (median of upper half)
  5. IQR: Q3 - Q1 = 15 - 5 = 10

Significance of the Interquartile Range

The IQR provides valuable insight into the spread of the central data. A smaller IQR indicates that the central 50% of the data points are clustered more closely together, suggesting less variability. Conversely, a larger IQR implies greater dispersion within the middle half of the dataset. This measure is particularly useful for identifying outliers, as data points falling significantly outside the range of (Q1 - 1.5 * IQR) or (Q3 + 1.5 * IQR) are often considered outliers.

Table: Quartile Definitions

Quartile Definition Percentage of Data Below
Q1 Median of the lower half of the data 25%
Q2 Median of the entire data set 50%
Q3 Median of the upper half of the data 75%
IQR Difference between Q3 and Q1 (Q3 - Q1) Middle 50%

In conclusion, the interquartile range (IQR) is a fundamental measure of data spread, calculated by subtracting the first quartile (Q1) from the third quartile (Q3). This formula applies to the underlying data represented by a histogram, providing insights into the variability of the middle 50% of observations.