{"id":15290,"date":"2023-11-23T13:56:35","date_gmt":"2023-11-23T13:56:35","guid":{"rendered":"https:\/\/businessyield.com\/tech\/?p=15290"},"modified":"2023-11-23T13:56:36","modified_gmt":"2023-11-23T13:56:36","slug":"how-to-find-outliers-with-iqr-easy-guide","status":"publish","type":"post","link":"https:\/\/businessyield.com\/tech\/how-to\/how-to-find-outliers-with-iqr-easy-guide\/","title":{"rendered":"How To Find Outliers With IQR: Easy Guide","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n<p>There are several ways to find outliers in the pattern of a data set, one of which is the Interquartile Range (IQR) method. <\/p>\n\n\n\n<p>The interquartile range, often abbreviated IQR, is the difference between the 25th percentile (Q1) and the 75th percentile (Q3) in a dataset. It measures the spread of the middle 50% of values and shows how the data is spread about the median. It is also less susceptible than the range to outliers and can, therefore, be more helpful.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what\"><span id=\"what-are-outliers\"><strong>What are outliers?<\/strong><\/span><\/h2>\n\n\n\n<p>Outliers are values at the extreme ends of a dataset. Some may represent true values from natural variation in the population. Other outliers may result from incorrect data entry, equipment malfunctions, or other\u00a0measurement errors.<\/p>\n\n\n\n<p>An outlier isn\u2019t always a form of erroneous or incorrect data, so you have to be careful with them in\u00a0data cleansing. What you should do with an outlier depends on its most likely cause.<\/p>\n\n\n\n<h3 id=\"types-of-outliers\" class=\"wp-block-heading\"><strong>Types of outliers<\/strong><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-true-outliers\"><span id=\"true-outliers\"><strong>True outliers<\/strong><\/span><\/h4>\n\n\n\n<p>True outliers should always be retained in your dataset because these just represent natural variations in your\u00a0<a href=\"https:\/\/www.scribbr.com\/methodology\/population-vs-sample\/\">sample<\/a>. <\/p>\n\n\n\n<p>An example of a true outlier is when you measure 100-meter running times for a representative sample of 560 college students. Your data are\u00a0normally distributed\u00a0with a couple of outliers on either end. Most values are centered around the middle, as expected. But these extreme values also represent natural variations because a variable like running time is influenced by many other factors.<\/p>\n\n\n\n<p>True outliers are also present in variables with skewed distributions where many data points are spread far from the\u00a0mean\u00a0in one direction. It\u2019s important to select\u00a0appropriate statistical tests\u00a0or measures when you have a\u00a0skewed\u00a0distribution or many outliers.<\/p>\n\n\n\n<h4 id=\"other-outliers\" class=\"wp-block-heading\"><strong>Other outliers<\/strong><\/h4>\n\n\n\n<p>Outliers that don\u2019t represent true values can come from many possible sources:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Data entry or processing errors<\/li>\n\n\n\n<li>Measurement errors<\/li>\n\n\n\n<li>Unrepresentative sampling<\/li>\n<\/ul>\n\n\n\n<p>An example of other outliers is when you repeat your running time measurements for a new sample. For one of the participants, you accidentally start the timer midway through their sprint. You record this timing as their running time.<\/p>\n\n\n\n<p>This data point is a big outlier in your dataset because it\u2019s much lower\u00a0than\u00a0all of the other times.<\/p>\n\n\n\n<p>This type of outlier is problematic because it\u2019s inaccurate and can distort your\u00a0research results if you calculate the average running time for all participants using this data. The average is much lower when you include the outlier compared to when you exclude it.\u00a0 Your\u00a0standard deviation\u00a0also increases when you include the outlier, so your\u00a0statistical power\u00a0is lower as well.<\/p>\n\n\n\n<p>In practice, it can be difficult to tell different types of outliers apart. While you can use calculations and statistical methods to detect outliers, classifying them as true or false is usually a subjective process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-understanding-iqr\"><span id=\"understanding-iqr\"><strong>Understanding IQR<\/strong><\/span><\/h2>\n\n\n\n<p id=\"mntl-sc-block_1-0-3\">Any set of data can be described by its\u00a0five-number summary. These five numbers, which give you the information you need to find patterns and outliers, consist of (in ascending order):<\/p>\n\n\n\n<ul class=\"wp-block-list\" id=\"mntl-sc-block_1-0-5\">\n<li>The minimum or lowest value of the dataset<\/li>\n\n\n\n<li>The first quartile\u00a0<em>Q<\/em><sub>1<\/sub>, which represents a quarter of the way through the list of all data<\/li>\n\n\n\n<li>The\u00a0median\u00a0of the data set, which represents the midpoint of the whole list of data<\/li>\n\n\n\n<li>The third quartile\u00a0<em>Q<\/em><sub>3<\/sub>, which represents three-quarters of the way through the list of all data<\/li>\n\n\n\n<li>The maximum or highest value of the data set.<\/li>\n<\/ul>\n\n\n\n<p id=\"mntl-sc-block_1-0-7\">These five numbers tell a person more about their data than looking at the numbers all at once could, or at least make this much easier. For example, the\u00a0range, which is the minimum subtracted from the maximum, is one indicator of how spread out the data is in a set.<\/p>\n\n\n\n<p id=\"mntl-sc-block_1-0-7\">However, note that the range is highly sensitive to outliers. If an outlier is also a minimum or maximum, the range will not be an accurate representation of the breadth of a data set.<\/p>\n\n\n\n<p id=\"mntl-sc-block_1-0-9\">Range would be difficult to extrapolate otherwise. Similar to the range but less sensitive to outliers is the interquartile range. The\u00a0interquartile range\u00a0is calculated in much the same way as the range. All you do to find it is subtract the first quartile from the third quartile:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>IQR =\u00a0<em>Q<\/em><sub>3<\/sub>\u00a0\u2013\u00a0<em>Q<\/em><sub>1<\/sub>.<\/p>\n<\/blockquote>\n\n\n\n<p id=\"mntl-sc-block_1-0-13\">The interquartile range shows how the data is spread about the median. It is less susceptible than the range to outliers and can, therefore, be more helpful.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-find-outliers-with-iqr\"><span id=\"how-to-find-outliers-with-iqr\"><strong>How to find outliers with IQR<\/strong><\/span><\/h2>\n\n\n\n<p id=\"mntl-sc-block_1-0-16\">Though it\u2019s not often affected much by them, the interquartile range can be used to detect outliers. This is done using these steps:<\/p>\n\n\n\n<ol class=\"wp-block-list\" id=\"mntl-sc-block_1-0-18\">\n<li>Calculate the interquartile range for the data.<\/li>\n\n\n\n<li>Multiply the interquartile range (IQR) by 1.5 (a constant used to discern outliers).<\/li>\n\n\n\n<li>Add 1.5 x (IQR) to the third quartile. Any number greater than this is a suspected outlier.<\/li>\n\n\n\n<li>Subtract 1.5 x (IQR) from the first quartile. Any number less than this is a suspected outlier.<\/li>\n<\/ol>\n\n\n\n<p id=\"mntl-sc-block_1-0-20\">Remember that the interquartile rule is only a rule of thumb that generally holds but does not apply to every case. In general, you should always follow up your outlier analysis by studying the resulting outliers to see if they make sense. Any potential outlier obtained by the interquartile method should be examined in the context of the entire set of data.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-practical-example-of-how-to-find-outliers-with-iqr\"><span id=\"a-practical-example-of-how-to-find-outliers-with-iqr\"><strong>A practical example of how to find outliers with IQR<\/strong><\/span><\/h2>\n\n\n\n<p>This tutorial provides a step-by-step example of how to find outliers in a dataset using the IQR method.<\/p>\n\n\n\n<h3 id=\"step-1-create-the-data\" class=\"wp-block-heading\"><strong>Step 1: Create the Data<\/strong><\/h3>\n\n\n\n<p>Suppose we have the following dataset:<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/www.statology.org\/wp-content\/uploads\/2021\/01\/iqrOutlier2.png?w=1200&ssl=1\" alt=\"\" class=\"wp-image-13073\" \/><\/figure><\/div>\n\n\n<h3 id=\"step-2-identify-the-first-and-third-quartile\" class=\"wp-block-heading\"><strong>Step 2: Identify the First and Third Quartile<\/strong><\/h3>\n\n\n\n<p>The first quartile turns out to be\u00a0<strong>5<\/strong>\u00a0and the third quartile turns out to be\u00a0<strong>20.75<\/strong>.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/www.statology.org\/wp-content\/uploads\/2021\/01\/iqrOutlier3.png?w=1200&ssl=1\" alt=\"\" class=\"wp-image-13074\" \/><\/figure><\/div>\n\n\n<p>Thus, the interquartile range turns out to be 20.75 -5 =\u00a0<strong>15.75<\/strong>.<\/p>\n\n\n\n<h3 id=\"step-3-find-the-lower-and-upper-limits\" class=\"wp-block-heading\"><strong>Step 3: Find the Lower and Upper Limits<\/strong><\/h3>\n\n\n\n<p>The lower limit is calculated as:<\/p>\n\n\n\n<p>Lower limit = Q1 \u2013 1.5*IQR = 5 \u2013 1.5*15.75 =\u00a0<strong>-18.625<\/strong><\/p>\n\n\n\n<p>And the upper limit is calculated as:<\/p>\n\n\n\n<p>Upper limit = Q3 + 1.5*IQR = 20.75 + 1.5*15.75 =\u00a0<strong>44.375<\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/www.statology.org\/wp-content\/uploads\/2021\/01\/iqrOutlier4.png?w=1200&ssl=1\" alt=\"Find outliers with IQR method\" class=\"wp-image-13075\" \/><\/figure><\/div>\n\n\n<h3 id=\"step-4-identify-the-outliers\" class=\"wp-block-heading\"><strong>Step 4: Identify the Outliers<\/strong><\/h3>\n\n\n\n<p>The only observation in the dataset with a value less than the lower limit or greater than the upper limit is\u00a0<strong>46<\/strong>. Thus, this is the only outlier in this dataset.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/www.statology.org\/wp-content\/uploads\/2021\/01\/iqrOutlier5.png?w=1200&ssl=1\" alt=\"Example of finding outliers with the interquartile range\" class=\"wp-image-13076\" \/><\/figure><\/div>\n\n\n<p><strong>Note:<\/strong>\u00a0You can use this\u00a0<a href=\"https:\/\/www.statology.org\/outlier-boundary-calculator\/\" target=\"_blank\" rel=\"noreferrer noopener\">Outlier Boundary Calculator<\/a>\u00a0to automatically find the upper and lower boundaries for outliers in a given dataset.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"ways\"><span id=\"other-ways-of-calculating-outliers\"><strong>Other ways of calculating outliers<\/strong><\/span><\/h2>\n\n\n\n<p>Apart from IQR, you can use several other methods to find outliers depending on your time and resources.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"sorting\"><span id=\"sorting-method\"><strong>Sorting method<\/strong><\/span><\/h3>\n\n\n\n<p>You can\u00a0sort\u00a0quantitative variables\u00a0from low to high and scan for extremely low or extremely high values. Flag any extreme values that you find.<\/p>\n\n\n\n<p>This is a simple way to check whether you need to investigate certain data points before using more sophisticated methods.<\/p>\n\n\n\n<p>Example: Sorting method<\/p>\n\n\n\n<p>Your dataset for a pilot experiment consists of 8 values.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>180<\/td><td>156<\/td><td>9<\/td><td>176<\/td><td>163<\/td><td>1827<\/td><td>166<\/td><td>171<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>You sort the values from low to high and scan for extreme values.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>9<\/strong><\/td><td>156<\/td><td>163<\/td><td>166<\/td><td>171<\/td><td>176<\/td><td>180<\/td><td><strong>1872<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"statistical\"><span id=\"statistical-outlier-detection\"><strong>Statistical outlier detection<\/strong><\/span><\/h3>\n\n\n\n<p>Statistical outlier detection involves applying\u00a0<strong>statistical tests<\/strong>\u00a0or procedures to identify extreme values.<\/p>\n\n\n\n<p>You can convert extreme data points into\u00a0<em>z<\/em>\u00a0scores\u00a0that tell you how many standard deviations away they are from the mean.<\/p>\n\n\n\n<p>If a value has a high enough or low enough\u00a0<em>z<\/em>\u00a0score, it can be considered an outlier. As a rule of thumb, values with a z score greater than 3 or less than \u20133 are often determined to be outliers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"visualizations\"><span id=\"using-visualizations\"><strong>Using visualizations<\/strong><\/span><\/h3>\n\n\n\n<p>You can use software to\u00a0visualize\u00a0your data with a box plot, or a box-and-whisker plot, so you can see the data distribution at a glance. This type of chart highlights minimum and maximum values (the\u00a0range), the\u00a0median, and the interquartile range for your data.<\/p>\n\n\n\n<p>Many computer programs highlight an outlier on a chart with an asterisk, and these will lie outside the bounds of the graph.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"dealing\"><span id=\"how-to-deal-with-outliers\"><strong>How to deal with outliers<\/strong><\/span><\/h2>\n\n\n\n<p>Once you\u2019ve identified outliers, you\u2019ll decide what to do with them. Your main options are removing or retaining them from your dataset. This is similar to the choice you\u2019re faced with when\u00a0dealing with missing data.<\/p>\n\n\n\n<p>For each outlier, think about whether it\u2019s a true value or an error before deciding.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Does the outlier line up with other measurements taken from the same participant?<\/li>\n\n\n\n<li>Is this data point completely impossible or can it reasonably come from your\u00a0population?<\/li>\n\n\n\n<li>What\u2019s the most likely source of the outlier? Is it a natural variation or an error?<\/li>\n<\/ul>\n\n\n\n<p>In general, you should try to accept outliers as much as possible unless it\u2019s clear that they represent errors or bad data.<\/p>\n\n\n\n<h3 id=\"remove-outliers\" class=\"wp-block-heading\"><strong>Remove outliers<\/strong><\/h3>\n\n\n\n<p>Outlier removal means deleting extreme values from your dataset before you perform\u00a0statistical analyses. You aim to delete any dirty data while retaining true extreme values.<\/p>\n\n\n\n<p>It\u2019s a tricky procedure because it\u2019s often impossible to tell the two types apart for sure. Deleting true outliers may lead to a biased dataset and an inaccurate conclusion.<\/p>\n\n\n\n<p>For this reason, you should only remove outliers if you have legitimate reasons for doing so. It\u2019s important to document each outlier you remove and your reasons so that other researchers can follow your procedures.<\/p>\n\n\n\n<h3 id=\"retain-outliers\" class=\"wp-block-heading\"><strong>Retain outliers<\/strong><\/h3>\n\n\n\n<p>Just like with missing values, the most conservative option is to keep outliers in your dataset. Keeping outliers is usually the better option when you\u2019re not sure if they are errors.<\/p>\n\n\n\n<p>With a large sample, outliers are expected and more likely to occur. However, each outlier has less of an\u00a0effect\u00a0on your results when your sample is large enough. The\u00a0central tendency and\u00a0variability\u00a0of your data won\u2019t be as affected by a couple of extreme values when you have a large number of values.<\/p>\n\n\n\n<p>If you have a small dataset, you may also want to retain as much data as possible to make sure you have enough\u00a0statistical power. If your dataset ends up containing many outliers, you may need to use a statistical test that\u2019s more robust to them. 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