IAI Actuarial Core Principles · Actuarial Statistics · Exploratory data analysis
Daily premium collections (₹ lakh) over 5 days are 2, 4, 6, 8 and 30. Which statement about the outlier rule 'flag values beyond 1.5 × IQR from the nearer quartile' is correct, using quartiles at the 2nd and 4th ordered values?
Only 30 is flagged. With quartiles 4 and 8 the IQR is 4, giving fences of −2 and 14. The value 30 lies above 14, while all other values, including 2, lie within the fences.
- ANo value is flagged
- BOnly 30 is flaggedCorrect
- COnly 2 is flagged
- DBoth 2 and 30 are flagged
- 8 and 30 are flagged
Explanation
Q1 = 4, Q3 = 8, IQR = 4. Upper fence = 8 + 6 = 14; lower fence = 4 − 6 = −2. Only 30 exceeds 14; 2 lies above −2, so it is not flagged.
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